Highwoods Properties Expands with Legacy Union Parking Garage
Highwoods Properties Enhances Portfolio with Major Acquisition
Highwoods Properties, Inc. (NYSE:HIW) has made a significant move by acquiring the Legacy Union Parking Garage located at 720 South Church Street in Charlotte. This acquisition, valued at $111.5 million, includes plans for immediate enhancements to the building. With a capacity of 3,057 spaces, the garage is perfectly positioned to cater to the parking needs of the existing Highwoods office properties located in the Legacy Union development.
Strategically Positioned for Growth
The Legacy Union Parking Garage is not just a parking facility; it is an integral part of the Highwoods portfolio, supporting approximately 1.2 million square feet of office space. This office space includes prominent buildings such as the Bank of America Tower and 650 South Tryon. The strategic connection provided by a skybridge enhances accessibility, making it even more valuable for tenants and visitors alike.
Revenue Generation and Business Model
A remarkable 70% of the garage’s annual revenue is expected to come from long-term leases with office customers, reflecting a favorable weighted average remaining contractual term of nine years. The additional revenue streams will stem from transient parking and special events, particularly those hosted at the adjacent Bank of America Stadium, which can accommodate 75,000 spectators. With these dynamics in play, the parking garage is projected to generate a solid cash flow and GAAP net operating income of $8.0 million in the first four quarters post-acquisition.
Vision for Future Development
Ted Klinck, President and CEO of Highwoods, expressed enthusiasm regarding this acquisition. He emphasized its importance in enhancing connectivity for office customers while simultaneously bolstering cash flows. Klinck believes this strategic investment not only supports the company’s current tenants but also contributes significantly to Highwoods’ long-term growth trajectory.
About Highwoods Properties
Headquartered in Raleigh, Highwoods Properties, Inc. is a reputable publicly-traded company listed on the NYSE under the ticker symbol HIW. The firm is fully integrated, focusing on the ownership, development, acquisition, leasing, and management of office properties primarily located in the best business districts of major cities, including Atlanta, Charlotte, Dallas, Nashville, Orlando, Raleigh, Richmond, and Tampa. Highwoods is driven by a vision to lead in the evolution of commercial real estate, creating vibrant environments that foster productivity and collaboration.
Highwoods is committed to crafting inspiring workplaces. The company views its role as a placemaker, believing that exceptional environments enhance business performance for tenants, translate into shareholder value, and uplift the communities it serves.
Looking Ahead
As Highwoods continues to expand its portfolio, developments such as the Legacy Union Parking Garage reflect its strategic focus on enhancing value and connectivity in its properties. By creating such synergies, Highwoods aims to deliver an even better experience for its clients and tenants moving forward.
Frequently Asked Questions
What recent acquisition did Highwoods Properties make?
Highwoods Properties acquired the Legacy Union Parking Garage located at 720 South Church Street in Charlotte for $111.5 million.
How many parking spaces does the Legacy Union Parking Garage have?
The garage has a total of 3,057 parking spaces.
What percentage of the garage's revenue comes from long-term leases?
Approximately 70% of the annual revenue is derived from long-term leases with office customers.
What strategic connection does the parking garage offer?
The parking garage is linked to nearby office buildings, including the Bank of America Tower and 650 South Tryon via a skybridge.
What is Highwoods Properties' vision for commercial real estate?
Highwoods aims to lead in commercial real estate evolution by creating environments that foster connections and inspire productivity.
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