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MEMPHIS—Raleigh, NC-based Highwoods Properties, a publicly-traded REIT, has embarked on its two-phase plans of selling assets in Greensboro, North Carolina and Memphis with the sale of International Paper IV, a 248,000 square foot, single customer building in Memphis for $76.4 million. Highwoods expects to close on the sale of Atrium I and II, a two-building office complex encompassing 84,000 square feet, prior to Dec. 31 for $13.2 million. These office properties, located in Memphis, are a combined 96% occupied and are projected to generate $5.9 million of annual cash and GAAP net operating income in 2020.

"These sales are the first closings of our market rotation plan to exit the Greensboro and Memphis markets and reinvest that capital in the BBDs (best business district) of higher-growth markets such as Charlotte, said Ted Klinck, president and CEO of Highwoods Properties, in prepared remarks. "We are pleased with our progress to date and remain on track to complete the first phase by mid-2020."

The sale of Atrium I and II is subject to customary closing conditions. The buyer's contractual due diligence period has ended and the buyer has posted earnest money deposits that are non-refundable except in limited circumstances.