Highwoods Agrees to Buy AA Property to Expand Footprint in Raleigh

Core Viewpoint - Highwoods Properties, Inc. has agreed to acquire Advance Auto Parts Tower, a 20-story, Class AA office tower in Raleigh, enhancing its portfolio in a high-demand area for premier office spaces [1][3]. Group 1: Acquisition Details - The Advance Auto Parts Tower spans approximately 346,000 square feet and is fully leased with a weighted average lease term of 8.2 years as of December 31, 2024 [1][2]. - The acquisition will be financed through proceeds from a recent non-core asset sale in Tampa, FL [2]. Group 2: Strategic Importance - This acquisition aligns with the growing demand for high-quality office spaces as companies emphasize return-to-office mandates [3]. - Highwoods aims to expand its presence in the North Hills mixed-use Best Business District, which has attracted numerous businesses and residents [4]. Group 3: Company Strategy and Performance - Highwoods follows a disciplined capital-recycling strategy, focusing on disposing of non-core assets and reinvesting in premium acquisitions and development projects [4]. - The company has seen its shares rise by 16.1% over the past year, outperforming the industry growth of 5.7% [5].