Core Insights - Highwoods Properties (HIW) has updated its investment activities to support long-term growth by acquiring Bloc83 in Raleigh and The Terraces in Dallas [1][8] Investment Details - Highwoods holds a 10% interest in Bloc83, acquired through a joint venture with the North Carolina Investment Authority, with a total investment of approximately $210.5 million. The mixed-use asset covers 492,000 square feet and includes two 10-story office buildings, with 27,000 square feet of retail space. As of December 31, 2025, the property was 97% leased with a weighted average lease term of 6.5 years [2] - Highwoods owns an 80% interest in The Terraces, acquired in a joint venture with Granite, totaling around $109.3 million. The company also contributed $12.9 million in preferred equity. This 12-story office building spans 173,000 square feet and was 98% leased as of December 31, 2025, with a weighted average lease term of seven years [3] Funding Strategy - The acquisitions will be funded through the sale of select non-core assets, making them leverage-neutral. The buyouts are expected to be immediately accretive to cash flows and neutral to the near-term FFO run rate for the company [4][8] Financial Projections - For 2026, Highwoods anticipates generating a GAAP net operating income (NOI) of approximately $9 million and cash NOI of $7.5 million from these investments, along with an additional $0.8 million from the preferred equity investment in The Terraces [4][8] Strategic Positioning - Highwoods' disciplined capital-recycling strategy, which involves shedding non-core assets and reinvesting in premium properties, enhances portfolio quality and positions the company for sustained growth [5]

Core Insights - Highwoods Properties, Inc. has completed the acquisition of 6Hundred at Legacy Union, a 24-story Class AA office tower in Charlotte, for a total expected investment of $223 million [1][2] - The property is currently 84% leased with a weighted average lease term exceeding 12 years and encompasses 411,000 square feet [2] - The acquisition will be funded on a leverage-neutral basis over the next six months using proceeds from non-core asset sales, with $37 million in non-core assets sold since October 1, 2025 [3] Investment Details - The total investment includes $8.5 million for planned near-term building improvements and leasing capital expenditures, net of $15.7 million in free rent and other credits received from the seller [1] - The building is designed to achieve LEED gold certification and features in-building parking for 832 vehicles [2] Company Overview - Highwoods Properties, Inc. is a publicly-traded, fully-integrated office real estate investment trust (REIT) focused on owning, developing, acquiring, leasing, and managing properties in major business districts across several cities [5] - The company's mission emphasizes creating exceptional environments and experiences to deliver greater value to customers and shareholders [5]

Core Insights - Highwoods Properties, Inc. has agreed to acquire 6Hundred at Legacy Union, a Class AA office tower in Charlotte, for a total expected investment of $223 million [2][3] - The property is 84% leased with a weighted average lease term exceeding 12 years and encompasses 411,000 square feet [3] - The acquisition is expected to close within the next 30 days, with a non-refundable earnest money deposit of $10 million already posted [7] Financial Overview - The total investment includes $8.5 million for near-term building improvements and leasing capital expenditures, net of $15.7 million in anticipated rent-related credits from the seller [4] - Upon stabilization, estimated annual net operating income (NOI) is projected to be between $17.5 million and $18.5 million on both GAAP and cash basis, with stabilization expected in 2027 on a GAAP basis and 2028 on a cash basis [4] - For 2026, the property is expected to generate approximately $10 million of GAAP net operating income [4] Strategic Positioning - The acquisition will increase Highwoods' portfolio at Legacy Union to 1.6 million square feet of Class AA office space, enhancing its presence in a high-demand area [3][6] - The company plans to fund the acquisition on a leverage-neutral basis using proceeds from non-core asset sales, having already sold $37 million of such assets since October 1, 2025 [5][7] - The CEO expressed confidence that the acquisition will be neutral to 2027 funds from operations (FFO) and accretive to cash flow, while improving portfolio quality [6][7]