Highwoods Properties, Inc. (HIW) announced that it has acquired the remaining 77 acres of development land at Ovation in the Cool Springs district of Franklin, TN, for $57.8 million. The company operates as a real estate investment trust, which engages in the operation, acquisition and development of office properties.
With this acquisition, the company now owns whole 145 acres of Ovation. Highwoods seeks to re-design the master plan as a high-density, mixed-use development and plans to move forward with a clear path to vertical development of all uses.
As per the original master plan, developed in 2015, Ovation was entitled for the development of 1.4 million square feet of office, over 400,000 square feet of retail, 950 residential units, 450 hotel rooms and 56 acres of perpetually-dedicated green space. (See Insiders’ Hot Stocks on TipRanks)
The President and CEO of Highwoods, Ted Klinck, said, “Once we’ve established the updated mixed-use master plan and obtain necessary approvals from the City of Franklin, we anticipate working with high-quality retail, multi-family and hotel developers to realize the tremendous potential of this live-work-play property, while retaining full control of the office development sites.”
On September 30, Morgan Stanley analyst Ronald Kamdem raised the price target on Highwoods to $49 from $48 and maintained a Buy rating. The new price target implies 8.6% upside potential.
The rest of the Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 2 Buys and 1 Hold. The average Highwoods price target of $50.67 implies 12.3% upside potential.