MIAMI—Highwood Properties just acquired its joint venture partner's 57% interest Glenlake North and South Towers, two class A, 10-story office buildings with structured parking. The sale price: $45.4 million.

Located in Atlanta's Central Perimeter submarket with access to GA 400, the properties span 505,000 square feet. The office assets are valued at $80.6 million, including $1 million of planned near-term building improvements.

That tallies to a total asset value of $159 per square foot—and that's at least a 30% discount to estimated replacement cost. Highland's total incremental investment is expected to be $46 million.

"These are solid assets in the Central Perimeter submarket, one of Atlanta's best business districts, which has absorbed over two million square feet over the past 18 months,” says Ed Fritsch, president and CEO of Highwood. The properties are 82% leased and are expected to generate full-year cash and GAAP net operating income of $5.1 million and $6.0 million, respectively.

"As with our July 2013 purchase of the CBD Orlando assets, owning 100% of these Atlanta properties will materially enhance our leasing process, fortify our position in the submarket, provide value enhancement through occupancy growth and further solidify our position as one of the larger owners of class A office properties in the market's best business districts,” Fritsch says.

Further south, Highlands also acquired Anchor Plaza, a two-story, 98,000-square-foot non-core office building in Tampa for $11.6 million. The property is currently 56% occupied.

"We continue to actively cull our portfolio through the sale of non-differentiating properties that do not fit the strategic direction of our portfolio, including our Atlanta industrial properties,” Fritsch says. “Year-to-date, we've sold $80 million of non-core assets, acquired $396 million of high-quality properties and have another $129 million in our in-process development pipeline that is 93% pre-leased.”