by Paula C. Squires
Parkway Properties Inc. has sold Greenbrier Towers I and II in Chesapeake for $16.7 million to First Potomac Realty Trust. The two six-story office buildings, which total 172,000 square feet, are located in the Greenbrier area near Interstate 64. According to Parkway, a Mississippi-based real estate investment trust, they were 87 percent occupied as of July 1. The sale completes Parkway’s exit from the Hampton Roads market.
The company said in a press release that the sales price represented a capitalization rate of about 9.7 percent. Parkway received about $16.1 million in proceeds at closing, which it used to reduce a revolving credit facility balance. While Parkway was getting out of what it considered a non-core market, First Potomac — a Bethesda-based REIT — saw an opportunity to increase its portfolio in Hampton Roads. The deal boosts the square footage First Potomac owns in that market to 3.7 million square feet. In addition, the company becomes a leading player in the 1 million-square-foot Greenbrier Business Park, where it now owns six buildings totaling 719,000 square feet.
The offices are near other First Potomac properties. “Greenbrier Towers I and II are highly attractive, cash-flowing buildings that are great additions to our southern Virginia portfolio,“ Tony Beck, Vice President, Southern Virginia, for First Potomac Realty Trust, said in a statement. The building’s 42 tenants include Consumer Portfolio Services and Gryphon Technologies.
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