Parkway Properties, which currently has one of the most impressive trophy Buckhead office portfolios, has purchased another value-add opportunity – this time in the Central Perimeter submarket. Inspired by strong submarket fundamentals, rising rental rates, and major expansions by Cox, State Farm, and possibly InterContinental Hotels, Parkway purchased the mortgage for 7000 Central Park for about $57 million, 13% less than outstanding balance of the debt. Parkway plans on foreclosing on the asset later this month.
7000 Central Park is currently 78% leased. Parkway Properties’ spokepeople have said that they are convinced that the asset has underperformed in the past and are dedicated to leasing up the rest of the building. Most speculate that the Central Perimeter submarket will only continue to improve as State Farm’s expansion ripples through the area and the last large chunks of space come off the market. No word yet on any planned renovations or improvements to the building.Share