Centre ATLANTA PROPERTY TOUR

Transcription

1 Parkway Acquisition Acquires of Courvoisier Centre ATLANTA PROPERTY TOUR April 204 April April 0, 2,

2 Disclaimer This presentation (the "Presentation") is provided for informational purposes and reference only. By acceptance hereof, you agree that (i) the information contained herein may not be used, reproduced or distributed to others, in whole or in part, for any other purpose without the prior written consent of Parkway Properties, Inc. ( Parkway ) and (ii) you will keep confidential all information contained herein not already in the public domain. No representation or warranty is given in respect of the information contained herein and Parkway is under no obligation to (and expressly disclaims any obligation to) update any of the information provided in this Presentation. Market and industry information throughout the Presentation have been provided by sources other than Parkway that are believed to be reliable. However, this information has not been independently verified and no assurances can be given by Parkway regarding the accuracy or completeness of this information. This Presentation does not constitute an offer to sell or a solicitation of an offer to buy any securities and may not be used or relied upon in evaluating the merit of investing in Parkway. 2

3 Miami Market Miami CBD 3

4 Acquisition Overview Parkway acquires the, located in the Brickell submarket of Miami, for $45.8 million Miami Market Strength Leading Submarket Best-In- Class Asset Miami Investor Tour Strong population and job growth, along with ongoing urbanization, has solidified the Miami market Miami s cultural and business diversity has led to heavy foreign investment and demand for international corporate presence in the market Office tenant demand for Miami CBD, combined with heavy multifamily development, has led to limited supply of office product in the Brickell submarket Brickell commands the highest asking rental rates in Miami and one of the highest across the Sunbelt markets is a high quality asset that is centrally located and offers a state of the art amenity base Asset includes significant parking infrastructure located on the supply constrained island of Brickell Key, offering potential upside in both rental rate and parking revenue growth Parkway will be hosting an investor tour of its and Lincoln Place assets on Wednesday, May 2 st, 204 Please RSVP by April 25 th, 204 4

5 Summary of Acquisition Parkway acquires the for $45.8 million, or $422 per square foot is a 346,000 square foot, two building Class A office complex, located in the Brickell submarket of Miami The acquisition was financed using available cash and proceeds received from borrowings under the company s new 7-year, unsecured term loan The acquisition allows Parkway to gain additional scale in the Miami market, complementing Parkway s Lincoln Place asset in Miami Beach Transaction Details Investment $45,800,000/ $422 PSF Building RSF: 345,568 SF Year Built / Renovated: 986(CCI) & 990(CCII) / 203 Occupancy at Close: 83.4% Year Cash Cap Rate 4.5% Estimated Replacement Cost: $500+/RSF 5

6 Miami Market Strength Miami-Dade MSA Job Growth Population Growth - With a population of almost 5.7 million, the Miami/Fort Lauderdale MSA is Florida s most populated metropolitan region and the seventh-largest metro in the nation Miami s population growth of 4.7% since 200 has nearly doubled the U.S. rate Economic Growth - Three years of positive job growth has pushed the Miami MSA unemployment rate down to 6.2% as of 2 February 204 The $5 billion dollar expansion of the Panama Canal and the $2 billion expansion and upgrade to the Miami Port is expected 3 have a positive impact on the local economy Miami Area Multifamily Building Permits Authorized 4 2 Urbanization - Cultural diversity and foreign investment has fueled growth and urbanization, particularly in the world of arts, dining, and high-end retail Miami is ranked 8 th on Knight Frank s 204 list of cities that matter to wealthy investors worldwide, only the 2 nd U.S. city on the list Luxury Residential Growth Demand for multifamily building permits in the Miami market has rebounded 8 condo towers proposed in the Miami area (35 of which are under construction), including 4 in downtown, which will add 5 2,00 new units Within the Brickell submarket, 3,949 units have been built since January 202, with 4,500 units currently being proposed 6. Source: U.S. Consensus Bureau 2. Source: U.S. Bureau of Labor Statistics 3. Source: Bloomberg 4. Source: Trulia, October 203 (includes Miami-Dade, Broward, and Palm Beach counties) 5. Source: Condo Vultures LLC 6. Source: JLL 4Q 4 Research 6

7 Brickell Office Market Drivers Brickell Submarket Limited Supply - Combination of land constraints and a heavy multifamily development pipeline has left current Class A office inventory in the Brickell submarket to under 4.4 million square feet As further redevelopment of office assets for multifamily purposes continues, office supply in the submarket is expected to decline In December of 203, Related Companies paid $04 million for a four acre site and adjacent Class B office space in Brickell, where it plans to develop a three tower multi-purpose asset Desirable Location Offers an amenity rich CBD environment as well as world class scenic water views () () International Exposure - Businesses that cater to international clients demand exposure to the Miami CBD More than,250 multinational companies have a presence in the 2 Miami market, including 2 international banking institutions Key Class A Brickell Market Indicators Inventory: 4,360,806 SF 4Q 3 Net Absorption: 45,395 SF YTD Net Absorption: 340,465 SF. Source: JLL 4Q 3 Research 2. Source: University of Miami Vacancy: 4.8% Average Asking Rent: $42.6 PSF 7

8 2020 Projected Miami CBD Skyline Residential development projects, highlighted in white, are expected to absorb most of available land in the Miami CBD Miami CBD () (). Source: Tag Media Inc,- Brickell Magazine 8

9 Overview is a high quality asset in an urban infill location that was purchased below replacement cost Current weighted-average of in-place rents of $38.73 are approximately 9% below the current Class A Brickell office market rate It is the only office complex located on Brickell Key, which is an exclusive, gated island containing high-end luxury condominiums and the five-star Mandarin Oriental Hotel & Spa offers exceptional 360 degree water views throughout the building, corner offices, and exclusive balconies in select tenant suites The building caters to smaller tenants and offers water views from almost all leasable office space At 2.7 parking spaces per,000 square feet, Courvoisier Centre offers tenants the second-highest parking ratio in the Brickell submarket and nearly double the rate of some downtown buildings Only public parking garage on Brickell Key offering transient parking for residential and retail guests as well as hotel overflow parking 9. Source: JLL 4Q 3 Research

10 Overview In 203, the property underwent extensive renovations with previous ownership investing nearly $0 million in upgrades to building lobbies, corridors and restrooms; exterior painting; elevator modernizations; chiller replacement; and the addition of a new 3,500 square foot fitness center Conveniently accessible to Interstate 95, Brickell Key is 400 feet off the coast of downtown Miami boasts a strong and diverse tenant mix, with the five largest tenants accounting for nearly 40% of the building area and a combined weighted average lease term in excess of 8 years Notable tenants include Young & Rubicam, Sony Pictures, Turner Broadcasting, World Wrestling Entertainment, and ET Publishing 35% 25% 5% Summary of Expiring Square Footage (Percentage of Total Square Footage) 5% -5% 3/205 3/206 3/207 3/208 3/209 3/

11 Photos Brickell Submarket

12 Miami Property Tour Parkway Properties Miami Property Tour Wednesday, May 2 st, 204 Schedule: 2:00PM ET :00PM ET Lunch and market overview at Loews Miami Beach Hotel :5PM ET 2:00PM ET Property Tour of Lincoln Place 2:30PM ET 3:5PM ET Property Tour of 7:00PM ET - 9:00PM ET Dinner at Prime 2 (2 Ocean Drive, Miami Beach, FL 3339) () () Accommodations: Rooms have been reserved for Wednesday, May 2 st, at the Loews Miami Beach Hotel (60 Collins Ave, Miami Beach, FL 3339). Contact hotel reservations at (877) for more information Transportation: A shuttle will be made available for property tours and will drop attendees off at the Loews Miami Beach Hotel. Transportation will also be provided to and from dinner. Please RSVP by April 25th, 204 To RSVP or if you have any question, Deerwood contact North Ted McHugh at tmchugh@pky.com, (407)

13 Parkway Properties, Inc. 390 North Orange Avenue Suite 2400 Orlando, FL 3280 (407)