Highwoods Properties, Inc. [NYSE: HIW] disclosed that it has decided to two non-core office buildings covering 443,000 square feet for $119.7 million. Highwoods Properties, Inc., is based in Raleigh. It has earned a reputation as a publicly traded real estate investment trust (REIT) and a member of the S&P MidCap 400 Index.
Previously, the firm disclosed that it has purchased a portfolio of office properties from Preferred Apartment Communities (PAC) on July 29, 2021, for a total investment of $683 million, including proposed near-term building developments and transaction costs. The long-term plan of the firm is to finance the purchase mainly by speeding up the sale of $500 to $600 million of current non-core assets by mid-2022, nearly half of which is scheduled to execute by year-end 2021.
Furthermore, the two properties which the firm is going to sell include Stony Point VI which is an 87,000 square foot single-customer building in Richmond, for $52.2 million, and Crescent Center which is a 356,000 square foot building in Memphis, for $67.5 million.
In addition, the properties were a total of 80% occupied and anticipated to generate $6.5 million of annual cash net operating income and $7.5 million of annual GAAP net operating income in 2021. The firm is planning to record non-FFO gains of roughly $37.3 million in the third quarter of 2021 in relation to these sales.