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]

Core Insights - Highwoods Properties, Inc. has made a total investment of $111.5 million to acquire the Legacy Union Parking Garage in Uptown Charlotte, which includes planned near-term building improvements [2][3] - The parking garage has 3,057 spaces and supports the parking needs for 1.2 million square feet of Highwoods-owned office space at Legacy Union, connected via a skybridge [2][3] - Approximately 70% of the annual revenue from the garage comes from long-term leases with office customers, with a weighted average remaining contractual term of 9 years [3] Financial Performance - The Legacy Union Parking Garage is expected to generate cash and GAAP net operating income of $8.0 million in the first four quarters following the acquisition [3] - The remaining revenue is derived from transient and special events, particularly those at the adjacent 75,000-seat Bank of America Stadium [3] Strategic Importance - The acquisition is seen as a strategic move to enhance connectivity with existing office customers and strengthen cash flows, thereby improving long-term growth prospects for Highwoods [4]