Highwoods Properties acquires Bloc83, The Terraces

Core Insights - Highwoods Properties (HIW) has made significant acquisitions, including Bloc83 in Raleigh and The Terraces in Dallas, through joint ventures with strategic partners [1] Group 1: Acquisition Details - Bloc83 is a 492,000 square foot mixed-use asset in CBD Raleigh, featuring two 10-story office buildings and 27,000 square feet of retail space, with a 97% lease rate as of December 31, 2025 and a weighted average lease term of 6.5 years [1] - The joint venture for Bloc83 involves a total investment of $210.5 million, including $3.3 million for near-term improvements and $0.5 million in transaction costs, with Highwoods initially holding a 10% interest [1] - The Terraces is a 173,000 square foot office building in Dallas, 98% leased as of December 31, 2025, with a weighted average lease term of 7.0 years and rents approximately 30% below market [1] Group 2: Financial Projections - The combined investment in The Terraces and Bloc83 is expected to generate GAAP net operating income of $9.0 million and cash net operating income of $7.5 million during 2026 [1] - Highwoods anticipates generating approximately $0.8 million of income in 2026 from its net preferred equity investment in The Terraces joint venture [1]