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HOUSTON-Parkway Properties Inc. has sold its 109,600-square-foot 1717 St. James office building. Those involved with the transaction declined to name the buyer, but area sources say that Beacon Realty Investments of Hallandale Beach, FL paid a little less than $9 million to acquire the 88% occupied asset.

Parkway Properties’ chief investment officer Jim Ingram tells GlobeSt.com that 1717 St. James, located in the Galleria submarket, was part of a three-building portfolio acquired from Mack-Cali in 2002. “Each asset has a good time to be harvested, and Parkway does recycle assets from time to time,” Ingram says. “We thought this was a good time to recycle.” The Jackson, MS company will still lease and manage the building. In the meantime, Parkway Properties has refinanced and will hold the other two buildings from the portfolio; the 150,000-square-foot 5300 Memorial Drive and a 148,400-square-foot building at 10497 Town & Country Way.

Ken Page and Scott Meyers with Grubb & Ellis Co.’s Houston office represented Parkway Properties in the transaction. Page tells GlobeSt.com that the building had “excellent institutional ownership” during the past seven years, with some of that period involving capital investment. As a result, “the buyer was able to come in and buy a building that’s 88& leased, and focus on renewal of existing tenants and leasing aspects, versus a capital program,” Page comments.

He adds that the building attracted multiple offers during the marketing period. Beacon Realty was able to snag the asset based on pricing, performance and ability to close.1717 St. James Street represents Beacon Realty’s second Houston closing within the past six months. In February, the Hallandale Beach, FL company acquired the 185,791-square-foot 8866-8876 Gulf Freeway office buildings.

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