Parkway Completes Renaissance Center Sale

Parkway Properties Inc. has completed the sale of its interest in Renaissance Center – a 190,000-square-foot, Class A office building in the Poplar Avenue corridor at 1715 Aaron Brenner Drive – to partner Parkway Properties Office Fund LP.

The $500 million discretionary fund was formed on July 6, 2005 and was fully invested at Feb. 15, 2008, according to Parkway’s Monday, March 12 filing with the Securities and Exchange Commission. The sale of the three remaining assets totaling 580,000 square feet in the Fund I portfolio is expected to close by the end of the first half of 2012.

The Renaissance Center transaction comes after the Orlanda, Fla.-based Real Estate Investment Trust announced the sale in November, and local experts expected the deal to close by 2011’s end.

In January, Parkway announced the disposition of Falls Building; Forum I, II & III; and Toyota Center – the majority of its Memphis portfolio, totaling 672,247 square feet – to Santa Monica, Calif.-based Hertz Acquisitions Group LLC.

Parkway’s contract to sell a portfolio of 15 non-core assets spanning 1.9 million square feet in Memphis; Jackson, Miss.; and Richmond, Va.; for a gross sale price of $147.5 million is expected to close during the first quarter of this year.

As of March 1, Parkway still had 100 percent ownership in Forum II & III (180,000 square feet; 78.3 percent occupied), Morgan Keegan Tower (337,000 square feet; 93.5 percent occupied), Falls Building (155,000 square feet; 71 percent occupied), Toyota Center and Garage (175,000 square feet; 87.4 percent occupied), and Forum I (163,000 square feet; 78.5 percent occupied).