CHARLOTTE, NC – Publicly-traded REIT Highwoods Properties Inc. plans to expand its presence in the Charlotte, NC market with two acquisitions.
The firm has agreed to acquire 650 South Tryon at Legacy Union in the city's uptown central business district submarket for an expected investment of $203 million, including $3.9 million of anticipated leasing capital expenditures to bring the property to stabilization. The 367,000-square-foot, trophy, LEED gold-certified office building delivered in late 2020 and is currently 78% leased. The asset is situated adjacent and connected to Highwoods Properties' Bank of America Tower at Legacy Union.
The firm's total investment for 650 South Tryon at Legacy Union is net of $5.1 million of free rent and other rent-related credits, anticipated from the seller at closing. Under GAAP, such credits are recorded as a reduction in the investment cost rather than as rental income. For 650 South Tryon at Legacy Union, Highwoods Properties estimates annual GAAP to be $11.2 million and cash net operating income to be $10.8 million, upon stabilization, which is projected to occur during 2024.
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Ingrid Tunberg
Ingrid Tunberg sits on the editorial team as a coordinator and reporter for Real Estate Forum and GlobeSt.com. She is responsible for writing stories, assisting with industry awards and marketing nomination events. Previously, Ingrid worked as a copywriter across various industries throughout New York City and Chicago.
