Jackson, MS-In a continued effort to dispose of non-core assets, Parkway Properties Inc. sold the 20-story Tower at 1301 Gervais in Columbia, SC for $19.5 million. The 298,926-square-foot CBD office asset had a 92.7% occupancy at the time of sale.
"The sale of Tower at 1301 Gervais resulted in a significant amount of cash proceeds which will contribute to our continuing efforts to improve our balance sheet,” said Parkway president and CEO Steven G. Rogers in a press release detailing the sale. “With the sale of this property, we now own one asset totaling 108,000 square feet in Columbia, which we have identified as a non-core market." Representatives from Parkway were not available for comment by deadline.
Parkway’s remaining asset in Columbia is the 108,236-square-foot Atrium at Stoneridge at 140 Stoneridge Dr., which is close to downtown Columbia. The REIT is also a third-party service provider for the 154,283-square-foot Center Point I and II on Centerpoint Dr.
The release goes on to note that the asset’s gross sale price represents a capitalization rate of approximately 9.4%, based on projected in-place cash net operating income for 12 months following the closing date. The release also noted that the proceeds received at closing will be used to reduce the company’s credit facility.
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