Highwoods Concludes Acquisition of Legacy Union Parking Garage

Core Insights - Highwoods Properties, Inc. has completed the acquisition of Legacy Union Parking Garage for $111.5 million, which includes planned near-term building improvements [1][7] - The parking garage, located in Uptown Charlotte, has 3,057 spaces and supports 1.2 million square feet of office space owned by Highwoods [1][7] - The acquisition is part of Highwoods' strategy to expand in high-growth markets and enhance its portfolio quality through acquisitions and development [3] Financial Performance - Approximately 70% of the garage's yearly revenue is derived from long-term leased customers, with a weighted average remaining contractual term of 9 years [2] - The garage is expected to generate cash and GAAP net operating income of $8 million in the first four quarters following the acquisition [2][7] Strategic Positioning - Highwoods employs a disciplined capital-recycling strategy, focusing on disposing of non-core assets and reinvesting in premium acquisitions and development projects [3] - The company’s diversified tenant base and expansion efforts in high-growth markets are key growth drivers, although competition may limit pricing power and profitability [4]