RALEIGH, NC--(Marketwired - Sep 13, 2016) - Highwoods Properties, Inc. (NYSE: HIW) today announced it has signed a long-term build-to-suit lease with Virginia Urology. Highwoods will develop an 87,000 square foot, three-story building that will serve as Virginia Urology's headquarters and medical facility (MOB) in Richmond's Stony Point submarket, one of the city's BBDs (Best Business Districts).
The Company's projected investment for this 100% pre-leased development project with structured parking is $29 million, including the value of Company-owned land. Construction is expected to be completed by the end of the third quarter of 2018.
Ed Fritsch, president and chief executive officer of Highwoods Properties, said, "We are pleased to have been selected by Virginia Urology to build their new headquarters. This new Highwoods customer has a solid business platform and we look forward to working with their team."
"We're excited to partner with Highwoods on our new headquarters and clinical space," said Brigette Booth, chief executive officer of Virginia Urology. "This new space will enable us to provide our services in a more cost-effective manner, ensure the highest-quality care and better equip us to respond to ongoing and rapid changes in healthcare. The location is a perfect fit given its access from major roadways, visibility and convenient location to our existing facility. The new building will support our continued commitment to the community."
Highwoods currently owns four buildings encompassing 460,000 square feet in Stony Point that are, on average, 96% occupied. Highwoods Stony Point portfolio is adjacent to the 669,000 square foot Stony Point Fashion Park mall.
With the addition of this project, the Company's development pipeline encompasses 1.7 million square feet representing an investment of nearly $520 million that is greater than 70% pre-leased.
About Virginia Urology
Virginia Urology (VU) has operated in the Greater Richmond metro area for over 75 years. VU has seven office locations throughout the area and two licensed and accredited ambulatory surgery centers. The practice currently has over 45 providers that include physicians that specialize in urology, urogynecology, anesthesiology, pathology, radiation oncology, and radiology.
About Highwoods Properties
Highwoods Properties, Inc., headquartered in Raleigh, is a publicly-traded (NYSE: HIW) real estate investment trust ("REIT") and a member of the S&P MidCap 400 Index. The Company is a fully-integrated office REIT that owns, develops, acquires, leases and manages properties primarily in the BBDs (Best Business Districts) of Atlanta, Greensboro, Memphis, Nashville, Orlando, Pittsburgh, Raleigh, Richmond and Tampa. For more information about Highwoods, please visit our website at www.highwoods.com.
Certain matters discussed in this press release are forward-looking statements within the meaning of the federal securities laws, such as the expected cost, timing and impact of our development activity. These statements are distinguished by use of the words "will", "expect", "intend" and words of similar meaning. Although Highwoods believes 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 the Company's current expectations include, among others, the following: 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 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 2015 Annual Report on Form 10-K and subsequent SEC reports.