Highwoods Concludes Property Acquisition in Raleigh for $138M

Core Viewpoint - Highwoods Properties, Inc. has completed the acquisition of Advance Auto Parts Tower for $138 million, enhancing its portfolio in a high-growth business district [1][4]. Acquisition Details - The acquired property is a 20-story, Class AA office tower with approximately 346,000 square feet located in Raleigh's North Hills Best Business District [1]. - The building, constructed in 2020, is LEED-gold certified and is fully leased with a weighted average lease term of 8.2 years as of December 31, 2024 [2]. - Advance Auto is projected to generate cash net operating income of $11.0 million in the first four quarters following the acquisition [2]. Financing Strategy - Highwoods plans to finance the acquisition through proceeds from a recent non-core asset sale in Tampa, FL, aligning with its strategy to meet the demand for premier office properties [3][4]. Company Strategy - Highwoods employs a disciplined capital-recycling strategy, focusing on disposing of non-core assets and reinvesting in premium acquisitions and development projects [4]. - The acquisition reflects the company's commitment to expanding its presence in high-growth markets and enhancing its overall portfolio quality [4]. Growth Drivers and Market Position - Highwoods benefits from a well-diversified tenant base, expansion efforts in high-growth markets, and a strong balance sheet, which are key growth drivers [5]. - The company's shares have increased by 13.3% over the past year, outperforming the industry growth of 5.6% [5].