ATLANTA—Orlando, FL-based Parkway Properties, Inc. reports it has agreed to acquire the One Buckhead Plaza office building here for a gross purchase price of $157 million.
The 20-story, 462,000-square-foot One Buckhead Plaza office building is located at the intersection of Peachtree Road and West Paces Ferry Road in the Buckhead submarket of Atlanta. The building includes 36,000 square feet of ground floor retail. The property is currently 88.6% occupied and is expected to generate an initial full-year cash net operating income yield of 5.5%, company officials say.
"One Buckhead Plaza is a trophy asset located in one of our key target submarkets," stated James R. Heistand, president and CEO of Parkway. "The building is located at 'main and main' in one of the most highly amenitized submarkets in the Southeastern United States. Upon closing of the acquisition, we will own approximately 10% of the Buckhead office market, which continues to command the highest rents in Atlanta. We believe that current in-place rents at One Buckhead Plaza are below market rates and we see a great opportunity to reposition the asset and unlock embedded growth."
Parkway expects the closing of the acquisition to take place in the first quarter of 2015. The company owns or has an interest in 52 office properties located in eight states with an aggregate of approximately 18.5 million square feet of leasable space as of Oct. 1, 2014.
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