Orlando, Florida-based Parkway Properties has reached an agreement to acquire One Buckhead Plaza, a 462,000 square foot Class A high-rise office building located in Atlanta.

One Buckhead PlazaThe office tower, designed by Thompson, Ventulett, Stainback & Associates and built in 1988, is located at the intersection of Peachtree Road and West Paces Ferry Road in the Buckhead submarket. It was originally developed by Taylor Mathis and includes 36,000 square feet of ground floor retail that features two restaurants. The property is currently 88.6% occupied.

“One Buckhead Plaza is a trophy asset located in one of our key target submarkets,” stated James R. Heistand, President and Chief Executive Officer of Parkway, in a statement. “The building is located at ‘main and main’ in one of the most highly amenitized submarkets in the Southeastern United States. Upon closing of the acquisition, we will own approximately 10% of the Buckhead office market, which continues to command the highest rents in Atlanta. We believe that current in-place rents at One Buckhead Plaza are below market rates and we see a great opportunity to reposition the asset and unlock embedded growth.”

Parkway’s gross purchase price for the asset is $157.0 million. The property is expected to generate an initial full-year cash net operating income yield of 5.5 percent. Parkway expects the transaction to close in the first quarter of 2015.