Highwoods Properties Inc. has sold Two Point Royal, a 124,000-square-foot building in Alpharetta, GA, and Highwoods Preserve I, a 199,000-square-foot, single customer building in northeast Tampa. The combined gross proceeds was $54.5 million.
The two office properties were 91% occupied upon sale and were expected to generate $4.2 million of annual GAAP net operating income in 2019. Highwoods will continue to serve as property manager of Highwoods Preserve I in exchange for customary fees.
The company will record non-FFO gains of approximately $20.7 million in the fourth quarter of 2018 in connection with these sales.
Ed Fritsch, Chief Executive Officer of Highwoods Properties, said, “The sale of these non-core assets is in sync with our ongoing work to continuously improve our portfolio and further strengthen our long-term cash flow growth. These assets were not strategic to our holdings, which consist primarily of Class A properties in BBD locations.”
Highwoods Properties, headquartered in Raleigh, is a publicly-traded real estate investment trust and a member of the S&P MidCap 400 Index.