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HAMPTON ROADS, VA-Parkway Properties, a Jackson, MS-based REIT, is pulling out of Virginia as part of a plan to redeploy capital in new markets. The REIT just sold an office property here to ADS Inc. for $7.8 million as part of that strategy.

Next, the company plans to put on the market Greenbrier I and II–a 172,000-square-foot, multi-story office complex, CIO James Ingram tells GlobeSt.com. The company is also exiting Richmond and Colombia, SC, he adds.

These departures, he says, are part of a long-term strategic plan. “We decided we wanted to put our dollars to work in larger markets.” Houston and Phoenix–despite its current difficulties–are two such markets. The greater Washington area is another, he adds.

Indeed, DC is seeing an increase in investors that at one time could not afford its real estate prices. In a recent interview, James Cassidy of Cassidy & Pinkard Colliers told GlobeSt.com that he has noticed “an influx of investors that have not been here in a while–foreign investors, high net worth individuals and funds that had been forced into secondary markets during the boom because of the high prices. Now they are back looking at DC.” Ingram laughed when this comment was repeated to him. “We are hoping to be in that category. We have tried to buy in DC but never could before.”

The Hampton Roads property, called Lynnwood Plaza, is an 82,000-square-foot building that is 96.7%. The gross sales price was $7.8 million, representing a cap rate of approximately 8.4% on twelve months projected cash net operating income from the date of closing. Parkway received net cash proceeds of approximately $7 million. Parkway owns or has an interest in 66 office properties in 11 states with an aggregate of approximately 13.5 million square feet of leasable space.

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