Parkway Properties plans purchase of Westshore Corporate Center

Orlando-based Parkway Properties Inc. announced it is under contract to purchase the 169,619-square-foot Westshore Corporate Center in Tampa for $22.5 million. The building, located at 600 N. Westshore Blvd., Tampa, is currently managed by Parkway Properties' affiliate Parkway Realty Services.

The 12-story office building was constructed in 1988 and is currently 77.7% leased.

Based on 2013 estimated cash net operating income, the purchase price would equate to a payoff ratio (capitalization rate) of 8.5%.

Parkway plans to assume the first mortgage secured by the property, which has a current outstanding balance of $14.5 million with a fixed interest rate of 5.8%. It is scheduled to mature in 2015.

The purchase is scheduled to close sometime in the fourth quarter as long as the lender agrees to the loan assumption.

If the transaction closes the building will be acquired through Parkway Properties Office Fund II LP.

Parkway Properties is a self-administered real estate investment trust that owns or has an interest in 39 office properties in nine states with an aggregate of 10.3 million square feet of leasable space as of Aug. 8. It currently owns 788,000 square feet in the Tampa Bay area and manages an additional 1.3 million square feet of commercial space.