A representative from Parkway Properties did not return a phone call seeking comment. The sale could generate approximate 22% of Parkway's annual net operating income, according a report prepared on Parkway Properties by Baird.

The two buildings are currently 93% leased, which is a 7% increase from the beginning of the year, according to the report. "They are very well leased and very well operated today," Loeb says. Health Care Services Corp., operating as Blue Cross Blue Shield of Illinois, expanded to 263,000-sf at One Illinois Center in June, as previously reported by GlobeSt.com. Health Care Services Corp. is the largest tenant in the 30-story building. Other tenants in One Illinois Center include the law firm Sheffky & Froelich, Federal Home Loan Bank of Chicago, the communication firm Golin & Harris and ad agency Digitas. The asking lease rate for One Illinois Center is between $15 per sf and $17 per sf, net.

Parkway is expected to sell the buildings into a joint venture, selling off about 75% of the buildings and retaining a 25% ownership, Loeb says. "Our thought is (the buyer would be) more a pension fund or insurance company as opposed to a foreign buyer or private equity buyer," he tells GlobeSt.com. Parkway has been looking to sell the buildings so they did not have such a concentration in Chicago and is also seeking to go into a more operator-owner role as opposed to an owner-operator role, Loeb says. Parkway "never intended to be a long-term owner" of the two buildings, Loeb says.

Parkway acquired 111 E. Wacker in 2006 for $198 million and acquired 233 N. Michigan in 2001 for $175 million, as previously reported by GlobeSt.com. Parkway had made an offer of $130 million for 111 E. Wacker in 2001 but was unsuccessful. At the time that the buildings were acquired, 111 E. Wacker was only 86% leased and 233 N. Michigan was 89% leased. Parkway had sold a 70% interest in the building to New York City-based Investcorp in 2002 for $125 million, as previously reported by GlobeSt.com. When Investcorp was looking to sell, Parkway bought the interest, Loeb says. In 2006, Parkway Properties tried to sell the two buildings into a joint venture, Loeb says. GlobeSt.com had previously reported that Ohio Public Employees Retirement System, a current Parkway Properties joint venture partner, was a potential buyer of a majority stake and that Parkway Properties struck its second joint venture deal involving Two Illinois Center, but Orlando-based Estein & Associates backed away. Parkway Properties had been in discussions with someone last year but that deal fell through and Parkway did not disclose the identity of the potential buyer, Loeb says.