PLANO, TX-A Texas-based partnership, led by Heady Investments, has reaped $22 million from the sale of Parkway Centre II, a three-year-old office building along the Dallas North Tollway in Plano. The six-story building on 6.4 acres has brought $3.2 million above its 2002 certified assessed value by the Collin County Appraisal District.
Principal Randy Heady, in partnership with Parkway Green Ltd., has made the close while pushing toward completion of a third Parkway Centre. The 151,988-sf second phase at 2805 Dallas Parkway is 98% leased, according to the buyer, AmeriVest Properties Inc. of Denver. Buyer or seller could not be reached for comment by press time.
According to a press release, the deal breaks down to $5 million in cash and a $17-million mortgage assumption, with a floating interest rate of LIBOR plus 195 basis points, maturing in August 2004. The cap rate was more than 10.5%. Seller of record, Tennessee Walker Ltd., sharing the same Dallas address as the developer, Heady Investments, acquired the asset in October 1998 from Parkway II Partners, according to the appraisal district.
AmeriVest says the class A holding is leased to 30 tenants, with average size leases of 5,000 sf. Less than 15% of the leases roll over in 2003. Some minor tenant improvements, including a common conference area, will be added.
The acquisition is the first bought from a follow-on common stock offering completed in June, according to a prepared statement by William Atkins, AmeriVest chairman and CEO. It’s the “first core property acquisition,” he said, adding it won’t be the last since Dallas is a target for AmeriVest’s investment strategy.