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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.”


Inside The Story

Highwoods’ Klinck

About David Cohen

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. He is responsible for covering commercial real estate news and trends in the Southeast, Florida, Washington D.C. and Boston at Connect CRE as well as specializing in the Student Housing sector. Prior to joining Connect, David was the editor of Northeast Real Estate Business magazine and Student Housing Business magazine at France Media as well as spending time freelancing for ESPN and the Associated Press in the fast-paced field of live sports event production. He is also an owner and investor in multifamily real estate in Atlanta, GA. David currently resides in Atlanta and graduated from the College of Communication & Information at the University of Tennessee Knoxville.

  • ◦Acquisition