Highwoods Closes $203 Million Acquisition of 650 South Tryon at Legacy Union in CBD Charlotte
August 17 2022 - 4:05PM
Highwoods Properties, Inc. (NYSE:HIW) has closed
the acquisition of 650 South Tryon in the heart of Charlotte’s
dynamic Uptown CBD submarket for a total investment of $203
million. The Company’s total investment includes $5.2 million of
anticipated leasing capital expenditures to bring the property to
stabilization and is net of $3.7 million of free rent and other
rent-related credits received from the seller at closing. 650 South
Tryon, which delivered in late 2020 and is currently 79% leased, is
a trophy, LEED gold-certified office building encompassing 367,000
square feet. 650 South Tryon is immediately adjacent and connected
to Highwoods-owned Bank of America Tower at Legacy Union.
About HighwoodsHighwoods
Properties, Inc., headquartered in Raleigh, is a publicly-traded
(NYSE:HIW) real estate investment trust (“REIT”) and a member of
the S&P MidCap 400 Index. The Company is a
fully-integrated office REIT that owns, develops, acquires, leases
and manages properties primarily in the best business districts
(BBDs) of Atlanta, Charlotte, Dallas, Nashville, Orlando,
Pittsburgh, Raleigh, Richmond and Tampa. For more information
about Highwoods, please visit our website at www.highwoods.com.
Forward-Looking StatementsSome
of the information in this press release may contain
forward-looking statements. Such statements include, in particular,
statements about our plans, strategies and prospects such as the
following: the planned sales of non-core assets and expected
pricing and impact with respect to such sales, including the tax
impact of such sales; the anticipated total investment, projected
leasing activity, estimated replacement cost and expected net
operating income of acquired properties and properties to be
developed; and expected future leverage of the Company. You can
identify forward-looking statements by our use of forward-looking
terminology such as “may,” “will,” “expect,” “anticipate,”
“estimate,” “continue” or other similar words. Although we believe
that our plans, intentions and expectations reflected in or
suggested by such forward-looking statements are reasonable, we
cannot assure you that our plans, intentions or expectations will
be achieved.
Factors that could cause actual results to
differ materially from Highwoods' current expectations include,
among others, the following: buyers may not be available and
pricing may not be adequate with respect to the planned
dispositions of non-core assets; comparable sales data on which we
based our expectations with respect to the sales price of the
non-core assets may not reflect current market trends; the extent
to which the ongoing COVID-19 pandemic impacts our financial
condition, results of operations and cash flows depends on future
developments, which are highly uncertain and cannot be predicted
with confidence, including the scope, severity and duration of the
pandemic and its impact on the U.S. economy and potential changes
in customer behavior that could adversely affect the use of and
demand for office space; the financial condition of our customers
could deteriorate or further worsen, which could be further
exacerbated by the COVID-19 pandemic; our assumptions regarding
potential losses related to customer financial difficulties due to
the COVID-19 pandemic could prove incorrect; counterparties under
our debt instruments, particularly our revolving credit facility,
may attempt to avoid their obligations thereunder, which, if
successful, would reduce our available liquidity; we may not be
able to lease or re-lease second generation space, defined as
previously occupied space that becomes available for lease, quickly
or on as favorable terms as old leases; we may not be able to lease
newly constructed buildings as quickly or on as favorable terms as
originally anticipated; we may not be able to complete development,
acquisition, reinvestment, disposition or joint venture projects as
quickly or on as favorable terms as anticipated; development
activity in our existing markets could result in an excessive
supply relative to customer demand; our markets may suffer declines
in economic and/or office employment growth; unanticipated
increases in interest rates could increase our debt service costs;
unanticipated increases in operating expenses could negatively
impact our operating results; natural disasters and climate change
could have an adverse impact on our cash flow and operating
results; we may not be able to meet our liquidity requirements or
obtain capital on favorable terms to fund our working capital needs
and growth initiatives or repay or refinance outstanding debt upon
maturity; and the Company could lose key executive officers.
This list of risks and uncertainties, however,
is not intended to be exhaustive. You should also review the other
cautionary statements we make in “Risk Factors” set forth in our
2021 Annual Report on Form 10-K. Given these uncertainties, you
should not place undue reliance on forward-looking statements. We
undertake no obligation to publicly release the results of any
revisions to these forward-looking statements to reflect any future
events or circumstances or to reflect the occurrence of
unanticipated events.
Contact: Brendan Maiorana
Executive Vice
President and Chief Financial
Officerbrendan.maiorana@highwoods.com 919-872-4924
Highwoods Properties (NYSE:HIW)
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