RICHMOND, VA—Highwoods Properties, a REIT basedin Raleigh, NC, has sold off eleven office assets in its localportfolio in two separate transactions. The properties traded fortotal proceeds of $40.7 million and Highwoodsnetted a total gain of $17.7 million from the transactions.
The buildings totaled 359,000 square feet. They arepredominantly single-story and are, on average, 90.6% leased. Theywere expected to generate $3.5 million in cash and GAAP netoperating income for full year 2014.
The sale was part of the REIT's strategy of selling off non-coreassets, says CEO Ed Fritsch in a preparedstatement. However, Richmond still remains an important market forthe company, particularly the West End where its footprint isheavily concentrated. Those assets, he says, have consistentlyperformed well throughout the cycles.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
