Parkway Properties Inc. entered into an agreement to acquire NASCAR Plaza, a 390,000-sq.-ft. office tower in Charlotte, N.C. from a joint venture between Trinity Capital Advisors and Rubenstein Partners for approximately $100 million.
NASCAR Plaza is located in Charlotte’s central business district (CBD), adjacent to NASCAR Hall of Fame. It was completed in 2009 and carries LEED Silver certification. Currently, the 20-story building is 88 percent leased, with an average in-place rent per sq. ft. of $25.61. It serves as NASCAR headquarters.
Parkway will own 100 percent of the asset and plans to assume the first mortgage on the property, which currently has an outstanding balance of approximately $42.3 million, with a 4.7 percent interest rate and a maturity date of March 30, 2016. Parkway plans to amend and restate the loan to current market terms upon assumption. The transaction is scheduled to close by the end of the fourth quarter of 2012.
“The purchase of NASCAR Plaza represents another off-market transaction that enables us to expand in one of our key, target submarkets with a high-quality asset,” said Parkway President and CEO James R. Heistand in a statement. “NASCAR Plaza has a strong tenant base and is the headquarters for several well-known companies, and we expect to create additional value through leasing and rent growth in a submarket that we believe will outperform during a recovery.”
The building is expected to generate a 2013 cash net operating income yield of approximately 7 percent.