RICHMOND, VA—Highwoods Properties, a REIT based in Raleigh, NC, has sold off eleven office assets in its local portfolio in two separate transactions. The properties traded for total proceeds of $40.7 million and Highwoods netted a total gain of $17.7 million from the transactions.

The buildings totaled 359,000 square feet. They are predominantly single-story and are, on average, 90.6% leased. They were expected to generate $3.5 million in cash and GAAP net operating income for full year 2014.

The sale was part of the REIT's strategy of selling off non-core assets, says CEO Ed Fritsch in a prepared statement. However, Richmond still remains an important market for the company, particularly the West End where its footprint is heavily concentrated. Those assets, he says, have consistently performed well throughout the cycles.

The REIT still owns or has an interest in 26 office properties, totaling 2.3 million square feet, in Richmond. These properties are, on average, 95% occupied--490 basis points higher than the Richmond market as a whole.

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Erika Morphy

Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.