"We are well into the marketing process," said president and CEO Steven G. Rogers during the REIT's recent earnings conference call. "I'm pleased with the interest buyers have shown so far. It's a well-leased, well-located asset that will command attention from the capital markets."

Despite 91.2% occupancy in the 30-story Illinois Center office building, well ahead of the East Loop submarket, Parkway Properties has nearly $100 million invested there. "We firmly believe it's in the best interest of our shareholders to diversify the holdings in our portfolio," Rogers explained, noting the East Loop asset represents 15% of the company's invested equity capital. Rogers suggested the company expects to stay on as manager and leasing agent for 233 N. Michigan Ave. as well as minority owner.

Parkway Properties' next joint venture partner will buy a property with little short-term leasing risk. Only 62,000 sf is up for renewal in 2006. However, those 12 leases are at lease rates averaging more than 10% above the market, according to the company's most recent earnings report. The company predicts net operating income from 233 N. Michigan Ave. will be $18.4 million in 2006.