Florida-based Parkway Properties has purchased the Hearst Tower in Charlotte for US$250 million. This is the latest in a series of tall building deals across the country by the company, including the sale of properties in Chicago and Jackson.
Parkway received a $200 million equity investment from a private investment firm to assist the company with the purchase. Hearst Tower, which sold for about $257 per square foot, is currently 94 percent leased with no expirations until 2017.
Hearst Tower is expected to generate approximately $17.5 million during the first year of Parkway's ownership, according to media reports.
Parkway recently completed the sale of The Pinnacle at Jackson Place in Jackson, Mississippi, for $29.5 million. In January, the company also sold 111 East Wacker, a 1 million-square foot (93,000-square meter) office building in downtown Chicago for $150.6 million, according to media reports.
Parkway is looking to buy buildings in the Sun Belt, including Atlanta, Jacksonville, Tampa, Orlando, Houston, Phoenix, Charlotte, Miami and Austin. But it is selling in Chicago, Jackson and Memphis.