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Atlanta & Southeast   /   April 19, 2021

David Cohen
By: David Cohen

Highwoods Properties to Acquire Five-Property Office Portfolio in Southeast

Highwoods Properties has agreed to acquire a four-property office portfolio in Charlotte and Raleigh and one mixed-use development site in Atlanta. The firm’s total investment, including the estimated value of the non-core assets, is expected to be $769 million. The seller is Preferred Apartment Communities.

The properties traded include 150 Fayetteville, a 29-story office tower in Raleigh; CAPTRUST Tower, a 16-story office tower in Raleigh; Capitol Towers, a 479,000-square-foot office property in Charlotte; Morrocroft Centre, a 291,000-square-foot office complex in Charlotte and Galleria 75, a mixed-use redevelopment site in the Cumberland/Galleria submarket of Atlanta. The office buildings in Charlotte and Raleigh, which encompass 1,630,000 square feet in total, were 95% leased as of December 31, 2020.

In addition, the firm has also agreed to acquire two non-core assets: a mezzanine loan related to a recently constructed office building in Atlanta; and Armour Yards, a multi-building creative office project in Atlanta.

“Our plan is to effectively match-fund our purchase of these trophy assets in the high-growth markets of Charlotte and Raleigh by selling a select portfolio of non-core assets,” said Ted Klinck, CEO at Highwoods Properties. “Importantly, once completed, our plan is expected to be roughly leverage-neutral, accretive to cash flows and neutral to our FFO run-rate, while improving the quality of our portfolio and providing higher growth over time.”

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David Cohen is Southeast Editorial Director at Connect Commercial Real Estate. David is a media veteran with more than 10 years of experience in journalism, copywriting and communications across a variety of roles.
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