Highwoods Properties Expands Investment with New Garage Purchase
Highwoods Properties Makes a Strategic Acquisition
Highwoods Properties, Inc., a leading office real estate investment trust (REIT) headquartered in Raleigh, has made a significant move in the commercial real estate sector. The company has acquired the Legacy Union Parking Garage for a total investment of $111.5 million.
Details of the Parking Garage Investment
This newly acquired garage, located at 720 South Church Street, boasts 3,057 parking spaces. It serves an important role in supporting the parking needs for 1.2 million square feet of Highwoods-owned office space at Legacy Union, which encompasses notable buildings such as the Bank of America Tower.
Revenue Generation and Long-Term Contracts
Highwoods reveals that approximately 70% of the parking garage’s annual revenue is generated from office customers that are on long-term leases, which possess a weighted average remaining contractual term of 9 years. The remaining revenue is sourced from transient parking and special events, particularly those held at the adjacent Bank of America Stadium.
Projected Income from the Acquisition
Following the acquisition, the Legacy Union Parking Garage is projected to produce a cash flow and GAAP net operating income of $8.0 million within the next four quarters, enhancing the financial standing of Highwoods Properties moving forward.
Executive Insights on the Acquisition
Ted Klinck, the President and CEO of Highwoods, expressed enthusiasm about this acquisition, stating, "We are excited to expand our presence at Legacy Union. This strategic investment enhances connectivity with our existing 1.2 million square feet of office space, while immediately boosting our cash flows and improving our long-term growth rate." These sentiments illustrate the company's commitment to growth and connectivity within its real estate operations.
About Highwoods Properties, Inc.
Highwoods Properties is a fully integrated office REIT that has a portfolio concentrated in the best business districts of various cities including Atlanta, Charlotte, Dallas, and others. The company is dedicated to creating value through strategic management, development, and leasing of its properties. Their mission is to inspire customers and employees by generating exceptional environments that lead to greater achievements.
Company’s Focus and Vision
With a strong vision focused on evolving the commercial real estate landscape, Highwoods Properties aims at producing environments that provide enhanced experiences for tenants and executives alike. By investing in key structures and facilities like the Legacy Union Parking Garage, they are poised for sustainable growth and success.
Contact Information for Inquiries
For further information regarding this acquisition, you may contact:
Brendan Maiorana
Executive Vice President and Chief Financial Officer
Email: brendan.maiorana@highwoods.com
Phone: 919-872-4924
Frequently Asked Questions
What is the significance of the Legacy Union Parking Garage acquisition?
The acquisition is significant as it supports Highwoods Properties' existing office spaces and is expected to generate substantial income over the next fiscal year.
How many parking spaces are available in the new garage?
The Legacy Union Parking Garage features a total of 3,057 parking spaces, making it a vital asset for accommodating office and event attendees.
What percentage of revenue does the garage generate from office leases?
Approximately 70% of the parking garage's annual revenue comes from long-term office leases.
Who is the CEO of Highwoods Properties?
Ted Klinck serves as the President and CEO of Highwoods Properties, providing leadership and strategic direction for the company.
Where is Highwoods Properties headquartered?
Highwoods Properties is headquartered in Raleigh and operates in several key business districts across the southeastern U.S.
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