SOURCE: Highwoods Properties

Highwoods Properties

November 11, 2014 15:45 ET

Highwoods Properties to Develop Headquarters for Bridgestone Americas, Inc.

CBD Nashville 514,000 Square Feet; $200 Million Total Investment

RALEIGH, NC--(Marketwired - Nov 11, 2014) - Highwoods Properties, Inc. (NYSE: HIW) has been selected by Bridgestone Americas, Inc., the U.S. subsidiary of Bridgestone Corporation, the world's largest tire and rubber company, to develop its new headquarters in the vibrant SoBro district of downtown Nashville, one of the city's best business districts (BBDs). 

Subject to Bridgestone Americas' receipt of approvals from the Nashville Metropolitan Council, Industrial Development Board and the State of Tennessee, Highwoods will develop a 30-story, 514,000 square foot Class A building, inclusive of 506,000 square feet of office that is 100% pre-leased to Bridgestone Americas, 8,000 square feet of speculative retail and 1,150 spaces of in-building parking, approximately 36% of which will be below-grade. 

Highwoods expects to invest approximately $200 million for this build-to-suit. Delivery is targeted for mid-to-late 2017. 

Ed Fritsch, president and chief executive officer of Highwoods Properties, commented, "We are very pleased to have been selected by Bridgestone Americas to build their headquarters office tower. This signature high-rise, designed by Perkins+Will, will be an ideal work environment for this highly regarded, globally recognized company with a strong presence in Nashville. We are excited to be the developer of this prominent and important project."

"Our new headquarters is a major milestone for the growth and transformation of our company," said Gary Garfield, CEO and President, Bridgestone Americas, Inc. "We are eager to work with Nashville, the State of Tennessee and Highwoods Properties to establish a new world-class home for our teammates and forever enhance the city's skyline."

Fritsch added, "This is an excellent opportunity for our Company to expand our presence in Nashville's SoBro, where we own The Pinnacle at Symphony Place, a 520,000 square foot high-rise forecasted to be 98% occupied by year-end, and a mere block from Bridgestone's new headquarters. 

"With the help of Tony Giarratana and his teams at Giarratana Development and Premier Parking, we identified and assembled a phenomenal one-acre site for this world-class office building. I applaud the efforts of our entire team, who have done an outstanding job of positioning our Company to acquire this land, be awarded this development and earn Bridgestone's confidence. This build-to-suit represents 100% net absorption for our Company."

With the addition of this project, the Company's development pipeline encompasses 1.8 million square feet representing an investment of approximately $549 million that is 88.6% pre-leased with a projected stabilized GAAP yield of approximately 9%.

Highwoods is Nashville's largest office landlord, owning 3.4 million square feet that was 96.4% occupied at September 30, 2014. 

The Bridgestone Americas Development Presentation
A brief presentation outlining this transaction can be accessed through the link below or on the Investor Relations section of the Company's web site at www.highwoods.com.

 http://www.highwoods.com/investor/The-Bridgestone-Americas-Overview.pdf 

About Bridgestone Americas, Inc.
Nashville, Tenn.-based Bridgestone Americas, Inc. (BSAM) is the U.S. subsidiary of Bridgestone Corporation, the world's largest tire and rubber company. BSAM and its subsidiaries develop, manufacture and market a wide range of Bridgestone, Firestone and associate brand tires to address the needs of a broad range of customers, including consumers, automotive and commercial vehicle original equipment manufacturers, and those in the agricultural, forestry and mining industries. The companies are also engaged in retreading operations throughout the Western Hemisphere and produce air springs, roofing materials, and industrial fibers and textiles. The BSAM family of companies also operates the world's largest chain of automotive tire and service centers. Guided by its One Team, One Planet message, the company is dedicated to achieving a positive environmental impact in all of the communities it calls home.

About Giarratana Development and Premier Parking
Giarratana Development, LLC is a real estate development company based in Nashville, Tennessee and the recognized leader in downtown housing. Giarratana believes a strong urban core is critical to a healthy and vibrant Nashville and therefore focuses on downtown projects. The ability to think outside the box, coupled with persistence, has enabled Giarratana to develop pioneering projects. Founded in 2001 by developer Tony Giarratana and led by co-owner and President, Ryan Chapman, Premier Parking is the largest provider of parking management services in Nashville. Premier Parking's Nashville portfolio includes 103 prime locations consisting of 16,328 parking spaces.

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.