CHARLOTTE, N.C. — The 47-story Hearst Tower in Charlotte has been purchased by Orlando-based Parkway Properties for $250 million. The $250 million, or $257 per square foot, purchase price of Hearst Tower represents a significant discount to replacement cost. The 972,000-sf building is 94 percent leased.
Parkway, a REIT, purchased the tower from Bank of America.
Parkway financed the purchase in part with an infusion with cash from a $200 million equity investment by private equity investment firm TPG (formerly Texas Pacific Group), of Fort Worth. TPG will have four members on Parkway’s board.
“With TPG’s financial commitment and strategic partnership, we will continue to take advantage of attractive opportunities such as Hearst Tower, as we strive to become one of the leading owners of high-quality office properties in select submarkets throughout the fast-growing Sunbelt region,” said Jim Heistand, Parkway’s President and Chief Executive Officer.