On April 10, 2014,
Parkway Properties Inc.
), an Orlando, FL-based real estate investment trust (REIT),
announced the acquisition of Courvoisier Centre, a Class A office
complex located in Miami, FL.
Parkway paid $145.8 million or $422 per square foot to the
acquiree located in the Brickell submarket of Miami. With this
takeover, Parkway is expected to strengthen its foothold in the
high-growth Miami market. The acquisition will also likely
complement Parkway's Lincoln Place asset in Miami Beach.
This purchase of a 346,000 square-foot, two-building office
complex, was financed through available cash and proceeds accrued
from borrowings under Parkway's new seven-year, unsecured term
loan. Notably, just two days before the announcement, Parkway
borrowed the full amount of its $100 million unsecured seven-year
Parkway has been eyeing properties in Miami for quite some time.
At present, the population growth in Miami is nearly double than
that of the U.S. Additionally, since the last three years, job
growth has lowered the unemployment rate in Miami.
Moreover, foreign investment and cultural diversity have given
an impetus to growth and urbanization in this area. The demand
for multifamily building permits has also gone up in the Miami
area in recent times. All these have prompted Parkway to be on
the lookout for property acquisition in Miami.
ALEXANDRIA REAL (ARE): Free Stock Analysis
PARKWAY PPTY (PKY): Free Stock Analysis
SOTHERLY HOTELS (SOHO): Get Free Report
WP CAREY INC (WPC): Free Stock Analysis
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As a matter of fact, the Courvoisier Centre is a top-class asset
in the urban locale of Brickell Key. The building offers water
views from almost all leasable office space. Moreover, it has the
second highest parking ratio in the Brickell submarket. All these
factors will make the acquisition accretive to Parkway.
Parkway's latest move is in line with its strategy of acquiring
best-in-class assets within the strongest submarkets across the
Sunbelt. The Courvoisier Centre property is expected to generate
an initial full-year cash net operating income yield of 4.5%.
Currently, Parkway carries a Zacks Rank #3 (Hold). Some
better-ranked stocks in the same sector include
Sotherly Hotels Inc.
W. P. Carey Inc.
Alexandria Real Estate Equities, Inc.
). While Sotherly Hotels and W. P. Carey sport a Zacks Rank #1
(Strong Buy), Alexandria Real Estate Equities holds a Zacks Rank