SOURCE: Highwoods Properties

Highwoods Properties

September 03, 2014 08:00 ET

Highwoods Properties Awarded Build-to-Suit Lease in Tampa

176,000 Square Feet; $56 Million Total Investment; 100% Pre-Leased to Laser Spine Institute

RALEIGH, NC--(Marketwired - Sep 3, 2014) - Highwoods Properties, Inc. (NYSE: HIW) has signed a long-term build-to-suit lease with Laser Spine Institute, a national health care organization specializing in minimally invasive spine surgery, for the company's headquarters and ambulatory surgery center (ASC). Highwoods will develop a 176,000-square-foot, six-story building with structured parking in Tampa's Westshore submarket, the city's best business district (BBD). The building will be situated on four acres of Highwoods-owned land at Avion Park.

Highwoods expects to invest approximately $56 million for this 100% pre-leased build-to-suit, which includes the value of existing Highwoods-owned land. Construction is expected to commence this fall, with completion in the first quarter of 2016.

Ed Fritsch, president and chief executive officer commented, "We are pleased to have been selected by Laser Spine Institute to build their new corporate headquarters and ambulatory surgery center. We also applaud the efforts of our Tampa team who have worked hard to earn this important project for Laser Spine Institute and we look forward to a long-term, mutually beneficial relationship."

"As we embark on the next chapter of our story, it's imperative that we align ourselves with a real estate partner that embodies our values and commitment to excellence," said Bill Horne, Chief Executive Officer, Laser Spine Institute. "Our Avion Park facility will allow us to extend treatment options to more patients than ever before. We're thrilled to be working with Highwoods as we continue our mission of providing an alternative to traditional open neck and back surgery."

Upon completion of their new headquarters and ambulatory surgery center, Laser Spine Institute will vacate 60,000 square feet in Harborview Plaza, a 20 percent joint venture property in the Westshore submarket.

With the addition of this project, Highwoods development pipeline encompasses 1.4 million square feet representing an investment of approximately $359 million that is 85.2% pre-leased.

To view a rendering of the new development please click here:

Laser-Spine-Institute-Rendering

About Laser Spine Institute
Headquartered in Tampa, Florida, Laser Spine Institute currently operates four regional surgery centers across the country, in Tampa, Florida; Scottsdale, Arizona; Philadelphia; and Oklahoma City. Laser Spine Institute has helped more than 45,000 patients find relief from debilitating neck and back pain caused by spinal stenosis, degenerative disc disease, pinched nerves, bone spurs, bulging/herniated discs, sciatica and other chronic conditions. More than 97 percent of patients say they would refer a friend or family member to have surgery at Laser Spine Institute. Additionally, Laser Spine Institute has been repeatedly recognized by Voyance Health as a National APEX Quality Award Winner for outstanding patient satisfaction, and reports an enterprise patient satisfaction rate of more than 96 percent.

Laser Spine Institute has been named a top employer by Modern Healthcare, Tampa Bay Times, Tampa Bay Business Journal, Philly.com, okc.BIZ and a Most Admired Company by BestCompaniesAZ. Opening in Tampa in 2005 with one operating room and nine employees, Laser Spine Institute now has more than 800 corporate and health care professionals across the country.

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 office REIT that owns, develops, acquires, leases and manages properties primarily in the best business districts (BBDs) of Atlanta, Kansas City, Memphis, Nashville, Orlando, Pittsburgh, Raleigh, Richmond, Tampa and the Triad. For more information about Highwoods Properties, please visit our website at www.highwoods.com.

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 2013 Annual Report on Form 10-K and subsequent SEC reports.