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CHICAGO-It didn’t take too long for Jackson, MS-based Parkway Properties, Inc. to find a joint venture partner for its first asset here. New York City-based Investcorp paid approximately $125 million for a 70% interest in 233 N. Michigan Ave., which Parkway bought a year ago for $173.5 million plus more than $6 million in capital improvements during its ownership.

“We have worked a long time with Investcorp and simply could not have found a better joint venture partner,” says Parkway president and chief executive officer Steven G. Rogers in a statement.

Parkway is using the proceeds from the partial spin-off to acquire $100 million worth of office properties in Houston and Phoenix. The REIT says it will pay $58 million for the Viad Corporate Center in Phoenix in a deal expected to close today. Another $13 million is going to the purchase of another Phoenix office asset, the Park on Camelback, which closed last week. Another $28 million will be spent on a three-building suburban office portfolio in the Houston area.

Parkway will continue managing the 1.07-million-sf property in the Illinois Center complex in the East Loop submarket, a factor considered to be a plus by its new joint venture partner. “Parkway’s operating strength combined with the location andquality of this building created a wonderful investment opportunity for our group,” says Investcorp senior partner F. Jonathan Dracos. “We look forward to working with them to acquire other attractive properties in the future.”

J. P. Morgan Securities Inc. and Deutsche Bank Securities, Inc. served asfinancial advisors to Parkway Properties.

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