SOURCE: Highwoods Properties

Highwoods Properties

April 06, 2011 16:05 ET

Highwoods Properties Acquires 48,000 Square Foot Medical Office Building in Raleigh

$9.0 Million Investment 94.3% Occupied

RALEIGH, NC--(Marketwire - April 6, 2011) -  Highwoods Properties, Inc. (NYSE: HIW), one of the largest owners and operators of office properties in the Southeast, today announced that it has acquired 4201 Lake Boone Trail, a 48,000 square foot, 3-story medical office building immediately across the street from Rex Hospital, a member of the UNC Health Care family with over 1,100 physicians on staff. Highwoods' investment is approximately $9.0 million, which includes planned near-term capital expenditures. This medical office building is 94.3% leased and is expected to generate first year cash net operating income of approximately $700,000, excluding $76,000 of expensed acquisition-related costs. The Company noted that, including this acquisition, it now owns eight office buildings directly across the street from Rex Hospital, encompassing 338,000 square feet that are 93.9% leased. 

Ed Fritsch, President and CEO, stated, "This acquisition is a strong addition to our portfolio and further enhances our position as a key provider of medical office space for physicians and practices wanting to be associated with Rex Hospital, and be in one of Raleigh's better locations. This property was on our acquisition 'wish list' and we applaud our Raleigh team for completing this off-market transaction."

About Highwoods Properties
Highwoods Properties, headquartered in Raleigh, North Carolina, is a publicly traded (NYSE: HIW) real estate investment trust ("REIT") and a member of the S&P MidCap 400 Index. The Company is one of the largest owners and operators of office properties in the Southeast and provides leasing, management, development, construction and other customer-related services for its properties and for third parties. At December 31, 2010, Highwoods owned or had an interest in 330 in-service office, industrial and retail properties encompassing approximately 32.4 million square feet and owned 611 acres of development land. The Company's properties and development land are located in Florida, Georgia, Mississippi, Missouri, North Carolina, South Carolina, Tennessee and Virginia. For more information about Highwoods Properties, please visit our web site at www.highwoods.com.

Certain matters discussed in this press release, such as the cost, timing and impact of our acquisition activity, are forward-looking statements within the meaning of the federal securities laws. These statements are distinguished by use of the words "will," "expect," "intend" and words of similar meaning. Although Highwoods believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.

Factors that could cause actual results to differ materially from Highwoods' current expectations include, among others, the following: the financial condition of our customers could deteriorate; development activity by our competitors in our existing markets could result in excessive supply of properties relative to customer demand; development, acquisition, reinvestment, disposition or joint venture projects may not be completed as quickly or on as favorable terms as anticipated; we may not be able to lease or re-lease second generation space quickly or on as favorable terms as old leases; our Southeastern and Midwestern markets may suffer declines in economic growth; we may not be able to lease our newly constructed buildings as quickly or on as favorable terms as originally anticipated; unanticipated increases in interest rates could increase our debt service costs; unanticipated increases in operating expenses could negatively impact our NOI; we may not be able to meet our liquidity requirements or obtain capital on favorable terms to fund our working capital needs and growth initiatives or to repay or refinance outstanding debt upon maturity; the Company could lose key executive officers; and others detailed in the Company's 2010 Annual Report on Form 10-K and subsequent SEC reports.