Highwoods Closes $138 Million Acquisition of Advance Auto Parts Tower in Raleigh
Highwoods Properties (NYSE:HIW) has completed the acquisition of Advance Auto Parts Tower in Raleigh's North Hills Best Business District for $138 million. The property is a 346,000 square foot, 20-story, LEED-gold certified, Class AA office tower that was delivered in 2020.
The building was 100% leased as of December 31, 2024, with a weighted average lease term of 8.2 years. The tower is adjacent to Highwoods-owned CAPTRUST Tower, which was 98.4% leased with a 6.3-year weighted average lease term.
The newly acquired property is projected to generate $11.0 million in cash net operating income and $11.9 million in GAAP net operating income during the first four quarters post-closing.
Highwoods Properties (NYSE:HIW) ha completato l'acquisizione della Advance Auto Parts Tower nel Best Business District di North Hills a Raleigh per 138 milioni di dollari. La proprietà è un grattacielo per uffici di classe AA, certificato LEED oro, di 346.000 piedi quadrati e 20 piani, consegnato nel 2020.
Edificio era completamente affittato al 31 dicembre 2024, con una durata media ponderata del contratto di locazione di 8,2 anni. La torre è adiacente alla CAPTRUST Tower di proprietà di Highwoods, che era affittata al 98,4% con una durata media ponderata di 6,3 anni.
La nuova proprietà acquisita è prevista generare 11,0 milioni di dollari di reddito operativo netto in contante e 11,9 milioni di dollari di reddito operativo netto GAAP durante i primi quattro trimestri dopo la chiusura.
Highwoods Properties (NYSE:HIW) ha completado la adquisición de la Advance Auto Parts Tower en el Mejor Distrito de Negocios de North Hills en Raleigh por 138 millones de dólares. La propiedad es una torre de oficinas de clase AA, certificada LEED oro, de 346,000 pies cuadrados y 20 pisos, que se entregó en 2020.
El edificio estaba 100% arrendado al 31 de diciembre de 2024, con un plazo medio ponderado de arrendamiento de 8,2 años. La torre está adyacente a la CAPTRUST Tower, propiedad de Highwoods, que estaba arrendada al 98,4% con un plazo medio ponderado de 6,3 años.
Se proyecta que la nueva propiedad adquirida genere 11,0 millones de dólares en ingresos operativos netos en efectivo y 11,9 millones de dólares en ingresos operativos netos GAAP durante los primeros cuatro trimestres posteriores al cierre.
Highwoods Properties (NYSE:HIW)는 롤리의 노스 힐스 최고의 비즈니스 지구에 있는 Advance Auto Parts Tower를 1억 3,800만 달러에 인수했습니다. 이 자산은 346,000 평방피트, 20층 규모의 LEED 골드 인증을 받은 AA 등급 오피스 타워로, 2020년에 완공되었습니다.
건물은 2024년 12월 31일 기준으로 100% 임대됨에 따라 평균 임대 기간은 8.2년입니다. 이 타워는 Highwoods 소유의 CAPTRUST Tower와 인접해 있으며, CAPTRUST Tower는 98.4% 임대되었고 평균 임대 기간은 6.3년입니다.
새로 인수한 자산은 폐쇄 후 첫 4분기 동안 1,100만 달러의 현금 순 운영 수익과 1,190만 달러의 GAAP 순 운영 수익을 창출할 것으로 예상됩니다.
Highwoods Properties (NYSE:HIW) a finalisé l'acquisition de la Advance Auto Parts Tower dans le meilleur quartier d'affaires de North Hills à Raleigh pour 138 millions de dollars. La propriété est une tour de bureaux de classe AA, certifiée LEED or, de 346 000 pieds carrés et de 20 étages, livrée en 2020.
Le bâtiment était 100 % loué au 31 décembre 2024, avec une durée moyenne pondérée de bail de 8,2 ans. La tour est adjacente à la CAPTRUST Tower, qui appartient à Highwoods et était louée à 98,4 % avec une durée moyenne pondérée de bail de 6,3 ans.
La nouvelle propriété acquise devrait générer 11,0 millions de dollars de revenus d'exploitation net en espèces et 11,9 millions de dollars de revenus d'exploitation net GAAP au cours des quatre premiers trimestres suivant la clôture.
Highwoods Properties (NYSE:HIW) hat die Übernahme des Advance Auto Parts Tower im besten Geschäftsviertel von North Hills in Raleigh für 138 Millionen Dollar abgeschlossen. Die Immobilie ist ein 346.000 Quadratfuß großes, 20-stöckiges Bürogebäude der Klasse AA, das mit dem LEED-Gold-Zertifikat ausgezeichnet wurde und 2020 fertiggestellt wurde.
Das Gebäude war zum 31. Dezember 2024 zu 100 % vermietet, mit einer gewichteten durchschnittlichen Mietdauer von 8,2 Jahren. Der Turm befindet sich in unmittelbarer Nähe zum CAPTRUST Tower, der Highwoods gehört und zu 98,4 % vermietet war, mit einer gewichteten durchschnittlichen Mietdauer von 6,3 Jahren.
Die neu erworbene Immobilie wird voraussichtlich 11,0 Millionen Dollar an Nettobetriebseinnahmen in bar und 11,9 Millionen Dollar an GAAP-Nettobetriebseinnahmen in den ersten vier Quartalen nach dem Abschluss generieren.
- 100% occupancy rate with long-term tenant commitment (8.2-year weighted average lease term)
- Expected to generate $11.0M cash NOI and $11.9M GAAP NOI in first year
- Premium Class AA office space with LEED-gold certification
- Strategic location adjacent to existing Highwoods property (CAPTRUST Tower)
- Significant capital deployment of $138M may impact short-term liquidity
- High acquisition cost at $399 per square foot
346,000 Square Feet,
RALEIGH, N.C., March 18, 2025 (GLOBE NEWSWIRE) -- Highwoods Properties, Inc. (NYSE:HIW) has closed the acquisition of Advance Auto Parts Tower in the heart of Raleigh’s vibrant mixed-use North Hills Best Business District for a total investment of
Advance Auto Parts Tower is projected to generate cash net operating income of
About Highwoods
Highwoods Properties, Inc., headquartered in Raleigh, is a publicly-traded (NYSE:HIW), fully-integrated office real estate investment trust (“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. Our vision is to be a leader in the evolution of commercial real estate for the benefit of our customers, our communities and those who invest with us. Our mission is to create environments and experiences that inspire our teammates and our customers to achieve more together. We are in the work-placemaking business and believe that by creating exceptional environments and experiences, we can deliver greater value to our customers, their teammates and, in turn, our shareholders. For more information about Highwoods, please visit our website at www.highwoods.com.
Forward-Looking Statements
Some of the information in this press release may contain forward-looking statements. Such statements include, in particular, statements about our plans, strategies and prospects such as the following: the expected financial and operational results and the related assumptions underlying our expected results; the planned sales of non-core assets and expected pricing and impact with respect to such sales, including the tax impact of such sales; the anticipated total investment, projected leasing activity, estimated replacement cost and expected net operating income of acquired properties and properties to be developed; and expected future leverage of the Company. You can identify forward-looking statements by our use of forward-looking terminology such as “may,” “will,” “expect,” “anticipate,” “estimate,” “continue” or other similar words. Although we believe that our plans, intentions and expectations reflected in or suggested by such forward-looking statements are reasonable, we cannot assure you that our plans, intentions or expectations will be achieved.
Factors that could cause our actual results to differ materially from Highwoods’ current expectations include, among others, the following: the financial condition of our customers could deteriorate; our assumptions regarding potential losses related to customer financial difficulties could prove incorrect; counterparties under our debt instruments, particularly our revolving credit facility, may attempt to avoid their obligations thereunder, which, if successful, would reduce our available liquidity; we may not be able to lease or re-lease second generation space, defined as previously occupied space that becomes available for lease, quickly or on as favorable terms as old leases; we may not be able to lease newly constructed buildings as quickly or on as favorable terms as originally anticipated; we may not be able to complete development, acquisition, reinvestment, disposition or joint venture projects as quickly or on as favorable terms as anticipated; development activity in our existing markets could result in an excessive supply relative to customer demand; our markets may suffer declines in economic and/or office employment growth; increases in interest rates could increase our debt service costs; increases in operating expenses could negatively impact our operating results; natural disasters and climate change could have an adverse impact on our cash flow and operating results; we may not be able to meet our liquidity requirements or obtain capital on favorable terms to fund our working capital needs and growth initiatives or repay or refinance outstanding debt upon maturity; and the Company could lose key executive officers.
This list of risks and uncertainties, however, is not intended to be exhaustive. You should also review the other cautionary statements we make in “Risk Factors” set forth in our 2024 Annual Report on Form 10-K. Given these uncertainties, you should not place undue reliance on forward-looking statements. We undertake no obligation to publicly release the results of any revisions to these forward-looking statements to reflect any future events or circumstances or to reflect the occurrence of unanticipated events.
| Contact: | Brendan Maiorana Executive Vice President and Chief Financial Officer brendan.maiorana@highwoods.com 919-872-4924 | |
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