Highwoods (HIW) to acquire $436 million office tower in Charlotte.
Highwoods Properties (HIW) announced today that it has agreed to acquire Bank of America Tower in Charlotte for $436 million. The acquisition is schedule to close in November and marks HIW's entry into the Charlotte market. Bank of America Tower encompasses 841,000 square feet plus a structured parking facility and is currently 90% leased. Key tenants include Bank of America, Parker Poe, and KPMG. Management noted that the acquisition will "give us a critical mass in the market and provide a platform from which to grow our Charlotte footprint."
Highwoods intends to match fund the purchase with asset sales, including an initial round of properties located in Greensboro and Memphis. These markets are perceived to offer less long-term growth potential, and therefore the shift in capital is expected to be accretive over the long-term.
Founded in 1978, Highwoods Properties, Inc. (HIW) is a $6.6 billion equity REIT that owns, manages and develops Class-A office properties in major business districts across the Southeastern U.S.