SOURCE: Highwoods Properties

Highwoods Properties

November 22, 2011 16:05 ET

Highwoods Properties Awarded Build-to-Suit Lease in Nashville

RALEIGH, NC--(Marketwire - Nov 22, 2011) - Highwoods Properties, Inc. (NYSE: HIW), today announced that it has been selected by LifePoint Hospitals, Inc. (NASDAQ: LPNT), a leading hospital company focused on providing quality healthcare services close to home, to develop its new corporate headquarters in the Brentwood submarket of Nashville.

Under the terms of the lease, Highwoods will build a seven-story, 203,000 square foot Class A office building along with structured parking, investing approximately $48.4 million in the project. The building will be 100% pre-leased by LifePoint Hospitals, Inc. Highwoods will also build approximately 25,000 square feet of immediately adjacent free-standing amenity retail fronting Old Hickory Blvd. that will be available for lease. The development will be on Company-owned land in its Seven Springs Park. Construction is expected to commence in May 2012 and the buildings are expected to be completed by year-end 2013.

Ed Fritsch, president and chief executive officer, commented, "We are pleased to have been selected by LifePoint to build their corporate headquarters and we congratulate them on their sound and well-performing business plan. LifePoint has been a Highwoods customer for over a decade and we are grateful for their continued confidence in Highwoods and our ability to accommodate their growth via this important project. We also applaud the efforts of our Nashville team who have worked long and hard to earn LifePoint's continued business."

"Every day, we strive to be the most exceptional hospital system in the country. The new LifePoint Hospital Support Center being developed by Highwoods Properties is the natural extension of this goal," said William F. Carpenter III, Chairman and Chief Executive Officer of LifePoint Hospitals. "By consolidating our corporate employees into one location, we can more efficiently serve our hospitals, strengthening their ability to provide the best possible care to communities nationwide."

Highwoods Seven Springs Park is located in the Brentwood submarket which consists of approximately 4.8 million square feet of office space that is currently 94.9% leased. Highwoods owns just over 1.2 million square feet in this submarket and those properties are 97.4% leased.

The Company noted that LifePoint is currently leasing 146,000 square feet in two Highwoods-owned properties in Nashville and those leases are slated to expire upon commencement of the new lease at Seven Springs.

The Highwoods owned 23-acre Seven Springs Park currently consists of a single, 130,000 square foot office building developed by Highwoods. The Company's Master Plan for the Park includes a total of four office buildings and two free-standing amenity retail buildings, encompassing approximately 715,000 square feet in total.

About LifePoint Hospitals
LifePoint Hospitals® is a leading hospital company focused on providing quality healthcare services close to home. Through its subsidiaries, LifePoint operates 54 hospital campuses in 18 states. With a mission of "Making Communities Healthier®," LifePoint is the sole community hospital provider in the majority of the communities it serves. More information about the Company, which is headquartered in Brentwood, Tennessee, can be found on its website,

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 a fully integrated, self-administered REIT that provides leasing, management, development, construction and other customer-related services for its properties and for third parties. At September 30, 2011, Highwoods owned or had an interest in 337 in-service office, industrial and retail properties encompassing approximately 34.5 million square feet and owned 601 acres of development land. The Company's properties and development land are located in Florida, Georgia, Mississippi, Missouri, North Carolina, Pennsylvania, South Carolina, Tennessee and Virginia. For more information about Highwoods Properties, please visit our web site at

Certain matters discussed in this press release, such as the expected cost, timing and impact of our development 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 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.