Wed Nov 19 10:20:00 UTC 2025: Okay, here’s a summary of the text and a news article based on it:

Summary:

Highwoods Properties (HIW) is acquiring 6Hundred at Legacy Union, a Class AA office tower in Charlotte, for approximately $223 million. The move will significantly expand Highwoods’ presence within the Legacy Union mixed-use campus. The acquired building is 84% leased with long-term leases, and Highwoods anticipates strong NOI growth as leases roll and rents reset to market rates. The acquisition is strategically aligned with Highwoods’ focus on high-quality assets in prime business districts and will be funded through the sale of non-core properties. Analysts view this as a positive step for the company, given the potential for rental growth and scale benefits.

News Article:

Highwoods Properties Expands Charlotte Footprint with $223 Million Office Tower Acquisition

CHARLOTTE, NC – Highwoods Properties (HIW) is set to bolster its presence in Charlotte’s Uptown CBD with the acquisition of 6Hundred at Legacy Union, a newly delivered Class AA office tower. The approximately $223 million deal will add 411,000 square feet of premium office space to Highwoods’ portfolio within the Legacy Union mixed-use campus.

The 6Hundred at Legacy Union building is currently 84% leased with a weighted average lease term of over 12 years. Highwoods anticipates a stabilized annual net operating income (NOI) of $17.5-$18.5 million. The company projects that it will achieve $10 million of GAAP NOI in 2026.

“This acquisition represents a strategic upgrade for Highwoods, allowing us to capitalize on a high-quality asset in a thriving Sunbelt city,” said a Highwoods spokesperson. “The property offers significant embedded rental growth potential, as in-place rents are more than 20% below market rates.”

The acquisition will expand Highwoods’ footprint at Legacy Union to roughly 1.6 million square feet of Class AA office space. Highwoods already owns the Bank of America Tower and SIX50 South Tryon within the campus. The concentration of assets in a high-demand urban location is expected to result in operational efficiencies, shared amenities, and improved leasing leverage.

Highwoods plans to fund the acquisition through the sale of non-core assets, maintaining balance sheet flexibility. The deal is expected to close within the next 30 days.

Analysts view the acquisition favorably, citing the quality of the asset, its location in a strong market, and the potential for significant rental growth. The move aligns with Highwoods’ strategy of focusing on best-in-class business district office properties and exiting less desirable holdings.

While Highwoods shares have declined 5.7% in the past three months, Zacks Investment Research maintains a “Buy” rating on the stock and suggests it is currently undervalued. Digital Realty Trust (DLR) and Public Storage (PSA) are other top-ranked stocks in the broader REIT sector.

Read More