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Parkway Properties exits the Richmond market with the sale of five office buildings

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Parkway Properties exits Richmond market with sale of five office buildings

As part of a portfolio sale in noncore markets, Parkway Properties Inc. is selling five office buildings totaling more than 400,000 square feet in Chesterfield County. The Orlando-based real estate investment trust has entered into an agreement to sell the Boulders Centers, (140,858 square feet) Moorefield I, Moorefield II and Moorefield III in the Moorefield Office Park (145,232 square feet) and the Winchester Building (126,867 square feet) to Hertz Investment Group in California. The deal, part of a larger portfolio sale of $147.5 million worth of assets in Jackson, Miss.; Memphis, Tenn., and Richmond , is expected to close during the first quarter.

Parkwa, which recently relocated its corporate office from Jackson to Orlando, also recently sold Greenbrier Towers I and II in Chesapeake for $16.7 million to First Potomac Realty Trust. “As a result of a thorough review of all or our markets, we determined that Jackson, Memphis and Richmond were non-core markets. A portfolio sale of these assets allows us to quickly realign our overall portfolio and focus our resources and capital on building critical mass in our remaining core market,” the company said in a statement at its website. 

Moorefield is one of the Richmond area’s older office parks. Developed in the 1980s, the brick and glass buildings that Parkway is selling have varying occupancy rates. According to Parkway, Moorefield III has an occupancy rate of 96.7 percent while I and II have rates of 72 and 65 percent respectively.

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