Parkway Purchases Phoenix Asset for $39.4M

Parkway Properties, Inc. PKY announced today the purchase of Hayden Ferry Lakeside I on behalf of Parkway Properties Office Fund II, L.P. for a purchase price of $39.4 million. Hayden Ferry is a 203,000 square foot, Class A+ office building constructed in 2002 and is located in the Tempe submarket of Phoenix. The property is currently 52.3% leased to 15 customers. Steven G. Rogers, President and Chief Executive Officer at Parkway, stated "The purchase of Hayden Ferry is consistent with our FOCUS Plan strategy of investing in newer, high-quality assets that have greater potential for future growth. Tempe is a highly desirable submarket in Phoenix because of its central location and access to mass transportation. The lower occupancy of Hayden Ferry provides an attractive opportunity to add value and it complements the core assets we already own in Phoenix and in the balance of our Fund II portfolio. Additionally, Parkway's selection by the seller was based in large part on our ability to perform within a short period and close with all cash."