Highwoods Properties, Inc. (NYSE:HIW) has sold One Independence Park, a 116,000 square foot office building in Tampa’s Westshore BBD, for $19.5 million. One Independence Park is 100% occupied by a single user under a lease the Company signed with the new user last year. The Company has also sold Riverbirch, a 60,000 square foot office building in the Research Triangle Park submarket of Raleigh, for $20.7 million. Riverbirch is 100% occupied by a single customer that recently renewed under a long-term lease. In 2023, these office buildings were projected to generate $2.6 million of GAAP net operating income and $1.9 million of cash net operating income, which includes $0.9 million of free rent.
Ted Klinck, President and CEO of Highwoods, stated “We are pleased with the execution of these non-core asset dispositions. These transactions highlight that high-quality buildings with healthy occupancy continue to generate solid interest from qualified buyers. Proceeds from these sales will further fortify our already healthy balance sheet, enhance our liquidity and position Highwoods to take advantage of future growth opportunities.”
As part of the sale of One Independence Park, the Company provided $9.8 million in non-recourse first mortgage seller financing. The note bears interest at an annual rate of 5.50% and is scheduled to mature in November 2023, but can be prepaid without penalty at any time prior to maturity. The cash proceeds received from both dispositions have been used to reduce amounts outstanding on the Company’s revolving credit facility and for general corporate purposes.
