Parkway Properties fund buys three Cypress Center buildings

BUYER: PKY Fund II Tampa I LLC (Parkway Properties Office Fund II LP), Jackson, Miss.

SELLER: Cat-FLA Owner LLC

PROPERTY: 5406, 5404 and 5310 Cypress Center Drive, Tampa

PRICE: $21.02 million

PREVIOUS PRICE: $14.6 million, $8.3 million and $4.7 million, January 2006

LAW FIRM ON DEED: Forman Perry Watkins Krutz & Tardy LLP, Jackson, Miss.

PLANS, DESCRIPTION: Parkway Properties Office Fund II LP purchased the three Cypress Center buildings in Westshore for $21.02 million.

The price equated to $73 per square foot.

Built in 1982, the three buildings feature a total of 286,326 square feet of office space.

The purchase was part of a portfolio of six office buildings the fund purchased from Eola Capital LLC for $380 million.

The deal also called for Eola Capital to combine its property management business with Jackson, Miss.-based Parkway Properties Inc. The combination was valued a total of $462 million, including costs.

“It increases the scale of the company by significantly expanding assets under management and advances its full transition to an operator/owner,” Steven Rogers, Parkway's president and CEO, says in a press release.

Started in early 2008, Parkway Properties Office Fund II is an investment fund, created and directed by Parkway Properties, with $375 million in equity capital.

Parkway Properties is a real estate investment trust specializing in office properties. As of May 17, it owned or has an interest in 70 office properties located in 12 states with an aggregate of approximately 15.1 million square feet of leasable space.

Purchase entity PKY Fund II Tampa I LLC mortgaged the buildings to Wells Fargo Bank NA for $12.09 million.