Lincoln Harris and Goldman Sachs Asset Management Close on Sale of Legacy Union SIX50 to Highwoods Properties

Rhea-AI Summary

Lincoln Harris and Goldman Sachs Asset Management have finalized the sale of a 367,000-square-foot building at 650 South Tryon in Charlotte to Highwoods Properties Inc. (NYSE: HIW). This marks the third sale within the Legacy Union project, which consists of over 1.5 million square feet of office space. The building is currently leased to major tenants like Deloitte and JLL. Highwoods Properties expands its footprint in Charlotte with this acquisition, following past successful transactions with Lincoln Harris and Goldman Sachs.

Positive

• Sale of 367,000-square-foot office building enhances Highwoods Properties' portfolio in Charlotte.
• Building leased to prominent tenants, ensuring steady income.

Negative

• None.

CHARLOTTE, N.C., Aug. 17, 2022 /PRNewswire/ -- Lincoln Harris, in partnership with the Real Estate business within Goldman Sachs Asset Management (Goldman Sachs), today announced they have closed on the sale of the 367,000-square-foot building at 650 South Tryon in Charlotte's Legacy Union mixed-use development to Highwoods Properties Inc. (NYSE: HIW).

SIX50 is the third office tower in the 10-acre Legacy Union project to sell in the last three years.

"The vision for Legacy Union has always been to create a dynamic gateway for Uptown Charlotte, and with three first-class office towers totaling more than 1.5 million square feet of space, that vision is certainly becoming a reality," said Johno Harris, president of Charlotte-based Lincoln Harris. "Legacy Union is a nod to our community past, present and future, and we look forward to watching the city of Charlotte continue to transform and thrive."

The asset, Legacy Union SIX50, represents the third sale following Honeywell's Global Corporate Headquarters which was sold in December 2021 and Bank of America Tower which was sold in November 2019.

"The success of SIX50 is a testament to the strength of the partnership between Goldman Sachs and Lincoln Harris to build a best-in-class, ESG focused trophy office building. This is the culmination of more than seven years of effort to entitle, develop, lease, and sell more than 1.5 million square feet of mixed-use commercial real estate on the former Observer site which has redefined Charlotte's skyline. We're excited for the next phase of office development at Legacy Union currently underway, and congratulate Highwoods on their acquisition as they expand their footprint in Charlotte," said Chris Nelson, Managing Director, Goldman Sachs Asset Management.

The 18-story building features a cantilevered glass façade, covered executive parking and convenient access to dining, retail, light-rail transit and all the other amenities in the surrounding Brooklyn Village Avenue Corridor. The building is leased to prominent tenants such as Deloitte, Cadwalader Wickersham & Taft, and JLL.

"We entered Charlotte in 2019 via a tremendous asset and partnership with Lincoln Harris and Goldman Sachs at Legacy Union with our purchase of Bank of America Tower. The success we've had together continues to bear fruit as we've expanded our presence and partnership with our acquisition of 650 South Tryon," noted Highwoods CEO Ted Klinck.

Lincoln Harris will retain management and leasing for the building.

Located at the southeast corner of Hill and South Tryon streets, Legacy Union SIX50 was the second tower completed at Legacy Union. The 10-acre project comprises two city blocks on the historic former site of The Charlotte Observer. Other elements of the property include the 33-story Bank of America Tower; Honeywell's 23-story Global Corporate Headquarters; a new 24-story, 415,000-square-foot office building currently under construction; a 14-level parking garage; and a street-level public plaza.

About Lincoln Harris:

Lincoln Harris, together with Lincoln Property Company, provides clients with a national platform and unparalleled institutional resources, including commercial real estate development, investment and property management. Based in Charlotte, Lincoln Harris takes great pride in its reputation as one of the region's most accomplished full-service commercial real estate companies. Lincoln Harris' multi-disciplinary team has a long history of working through complex transactions and adopting innovative approaches to real estate problems. We develop and implement comprehensive national real estate programs for our clients and cultivate a sense of trust in the communities we serve and the individual transactions we service. To learn more about Lincoln Harris properties and services, please visit www.lincolnharris.com.

About Highwoods Properties Inc.:

Highwoods Properties Inc., headquartered in Raleigh, is a publicly-traded (NYSE:HIW) real estate investment trust ("REIT") and a member of the S&P MidCap 400 Index. 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, Nashville, Orlando, Pittsburgh, Raleigh, Richmond and Tampa. For more information about Highwoods, please visit our website at www.highwoods.com.

About Goldman Sachs Asset Management Real Estate

Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs (NYSE: GS), we deliver investment and advisory services for the world's leading institutions, financial advisors and individuals, drawing from our deeply connected global network and tailored expert insights, across every region and market—overseeing more than $2 trillion in assets under supervision worldwide as of June 30, 2022. Driven by a passion for our clients' performance, we seek to build long-term relationships based on conviction, sustainable outcomes, and shared success over time. Goldman Sachs Asset Management invests in the full spectrum of alternatives, including private equity, growth equity, private credit, real estate and infrastructure. Established in 1991, the Real Estate business within Goldman Sachs Asset Management is one of the largest investors in real estate with over $50 billion in assets invested since 2012 across the spectrum of investment strategies from core to opportunistic. Our global team invests across all sectors with deep expertise across the capital structure, in assets ranging from single properties to large portfolios, through senior mortgages, mezzanine debt and equity. Follow us on LinkedIn.

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SOURCE Lincoln Harris

FAQ

What is the recent acquisition made by Highwoods Properties?

Highwoods Properties has acquired the 367,000-square-foot building at 650 South Tryon in Charlotte.

What is the significance of the Legacy Union project?

The Legacy Union project includes over 1.5 million square feet of office space and has three completed office tower sales, enhancing its status as a key business district in Charlotte.

Who were the partners in the sale of the 650 South Tryon building?

The sale was a partnership between Lincoln Harris and Goldman Sachs Asset Management.

What notable tenants occupy the Legacy Union SIX50 building?

Notable tenants include Deloitte, Cadwalader Wickersham & Taft, and JLL.

When was the sale of the Legacy Union SIX50 building finalized?

The sale was finalized on August 17, 2022.