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PS Business Parks (PSB) Sells 3 Arizona Parks for $52M

On Nov 21, PS Business Parks Inc. (PSB), the Glendale, CA-based Equity-Real Estate Investment Trust (“REIT”) announced the vending of three business parks in Phoenix, AZ. This move is in sync with the company’s strategy to shed off its Arizona assets. The company has plans to sell the remaining 3,000 square foot of property in Tempe, AZ later.

The three parks sold by PS Business Parks included 42 buildings, covering around 656,000 square feet and having an occupancy rate of 86.8%. After excluding transaction costs, net proceeds accrued from this sale amounted to around $52.2 million. The company will likely utilize the funds for acquiring high-yielding assets.

PS Business Parks is mainly engaged in ownership, management and acquisition of business parks containing office flex space. As of Nov 4, the company wholly owned 29.1 million rentable square feet of assets, spreading across eight states, including California, Texas, Virginia, Florida, Maryland, Washington, Arizona and Oregon.

On Nov 3, PS Business Parks acquired Austin, TX-based 246,000 square foot multi-tenant industrial building for $10.6 million. Acquisition of this building increased the company’s presence in Austin to 2.0 million square feet.

Currently, PS Business Parks holds a Zacks Rank #4 (Sell). Investors interested in Equity-REITs may consider better-ranked stocks like Corrections Corporation of America (CXW), First Industrial Realty Trust Inc. (FR) and Cousins Properties Inc. (CUZ). While Corrections Corporation sports a Zacks Rank #1 (Strong Buy), the other two stocks have a Zacks Rank #2 (Buy).

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