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]

Highwoods Properties (HIW) has acquired Bloc83, a two-building, 492,000 square foot mixed-use asset in CBD Raleigh, in a joint venture with the North Carolina Investment Authority and The Terraces, a 173,000 square foot office building in the Preston Center BBD of Dallas, in a joint venture with Granite Properties. Bloc83 is a 492,000 square foot mixed-use asset that includes two 10-story best-in-class office buildings with 27,000 square feet of ground floor amenity retail located in CBD Raleigh. The build ...

_____________________________________ Acquires Bloc83 in CBD Raleigh in Joint Venture with the North Carolina Investment Authority$21.0M Total Investment (at HIW 10% Share)492,000 Square Feet, 97% Leased_____________________________________ Acquires The Terraces in Preston Center BBD in Dallas in Joint Venture with Granite Properties$87.4M Total Investment (at HIW 80% Share)173,000 Square Feet, 98% Leased_____________________________________ Acquisitions to be Funded Primarily ThroughSales of Non-Core Asse ...