Highwoods Agrees to Acquire Advance Auto Parts Tower in Raleigh

Core Viewpoint - Highwoods Properties, Inc. has agreed to acquire the Advance Auto Parts Tower, a 20-story, Class AA office building in Raleigh, which is fully leased and strategically located adjacent to another Highwoods property, the CAPTRUST Tower [2][4] Group 1: Acquisition Details - The Advance Auto Parts Tower spans 346,000 square feet and is LEED-gold certified, with a current weighted average lease term of 8.2 years as of December 31, 2024 [2] - The acquisition is expected to close within the next 30 days, with the company posting non-refundable earnest money deposits of $20 million [4] - The funding for this acquisition will be on a leverage-neutral basis, utilizing proceeds from the recent sale of non-core assets in Tampa [3] Group 2: Strategic Importance - The acquisition is seen as a strategic move to enhance Highwoods' presence in the North Hills mixed-use Best Business District, which has strong demographics attracting businesses and residents [4] - The company anticipates that this acquisition will be immediately accretive to cash flows and improve portfolio quality, while maintaining a neutral impact on near-term funds from operations (FFO) [4] Group 3: Company Overview - Highwoods Properties, Inc. is a publicly-traded real estate investment trust (REIT) focused on owning, developing, acquiring, leasing, and managing properties in prime business districts across several major cities [5] - The company's mission emphasizes creating exceptional environments and experiences to deliver greater value to customers and shareholders [5]