Highwoods Properties, Inc. Acquires Its Joint Venture Partner’s 75% Interest in Highwoods DLF Forum, LLC
January 21, 2021 at 05:00 pm
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Highwoods Properties, Inc. announced investment transactions that have closed to date in early 2021. The Company has acquired its joint venture partner’s 75% interest in Highwoods DLF Forum, LLC, which owns a five-building office complex called “The Forum” in Raleigh, for a purchase price of $131.3 million. The properties, which encompass 636,000 square feet, are valued at $184.5 million, including $9.5 million of planned near-term building improvements. This equates to a total asset value of $290 per square foot, an approximate 25% discount to estimated replacement cost. The Company’s total incremental investment is expected to be $138.4 million. The properties are a combined 91.0% occupied with a weighted average lease term of 6.0 years, and are expected to generate 2021 cash and GAAP net operating income of $11.5 million and $12.4 million, respectively.
Highwoods Properties, Inc. is a real estate investment trust (REIT). The Company is a fully integrated office REIT that owns, develops, acquires, leases and manages properties primarily in the best business districts (BBDs) of Atlanta, Charlotte, Dallas, Nashville, Orlando, Raleigh, Richmond and Tampa. Its primary business is the operation, acquisition and development of office properties. The Company provides leasing, management, development, construction and other customer-related services for its properties and for third parties. The Company conducts its activities through Highwoods Realty Limited Partnership (the Operating Partnership). The Company owns an interest in approximately 28.4 million rentable square feet of in-service properties, 1.6 million rentable square feet of office properties under development and development land with approximately 5.2 million rentable square feet of potential office build-out.
HIGHWOODS PROPERTIES, INC. 
