Highwoods Properties announces recent disposition activity

Highwoods Properties has sold in a series of transactions non-core properties in Raleigh for combined gross proceeds of $79.4M. Gross proceeds from dispositions closed in Q1 totaled $16.9M with the remainder closing early in Q2. The sold properties include eight office buildings encompassing 338,000 square feet across from Rex Hospital in the west Raleigh submarket and one office building encompassing 97,000 square feet adjacent to the Research Triangle Park. On a combined basis, these properties are 85% occupied and were projected to generate $6.0M of GAAP and cash net operating income in 2024. As part of the sale of one building, the company provided $6.2M in non-recourse first mortgage seller financing. The note is scheduled to mature in February 2025, but can be prepaid without penalty at any time prior to maturity. The cash proceeds received from the dispositions have been used to reduce amounts outstanding on the company’s revolving credit facility and for general corporate purposes.