Highwoods Properties, Inc. Announces Acquisition of 6Hundred at Legacy Union for $223 Million

$223M Total Investment, Delivered in 2025
411,000 Square Feet, 84% Leased
Closing Scheduled for Next 30 Days

RALEIGH, N.C., Nov. 17, 2025 (GLOBE NEWSWIRE) -- Highwoods Properties, Inc. (NYSE:HIW) today reported it has agreed to acquire 6Hundred at Legacy Union, a 24-story, Class AA office tower located in Charlotte’s Uptown CBD, for a total expected investment of $223 million.

6Hundred at Legacy Union, which delivered in 2025 and is currently 84% leased with a weighted average lease term of over 12 years, is a class AA office tower encompassing 411,000 square feet with a planned LEED gold certification and in-building parking that can accommodate 832 vehicles. 6Hundred is immediately adjacent and connected to Highwoods-owned Bank of America Tower at Legacy Union and SIX50 South Tryon at Legacy Union. This acquisition will increase Highwoods portfolio at Legacy Union to 1.6 million square feet of class AA office with over 4,200 structured parking spaces.

The Company’s total investment includes $8.5 million of planned near-term building improvements and anticipated leasing capital expenditures to bring the property to stabilization and is net of $15.7 million of free rent and other rent-related credits anticipated to be received from the seller at closing. The Company noted that under GAAP, such credits are recorded as a reduction in the investment cost rather than as rental income. The Company estimates annual net operating income to be approximately $17.5 million to $18.5 million on both a GAAP and cash basis upon stabilization, which is projected to occur during 2027 on a GAAP basis and 2028 on a cash basis. During 2026, 6Hundred at Legacy Union is expected to generate approximately $10 million of GAAP net operating income.

The Company plans to fund the acquisition of 6Hundred at Legacy Union on roughly a leverage-neutral basis over the next six months using the proceeds from non-core asset sales. Since October 1, 2025, the Company has sold $37 million of non-core assets.

Ted Klinck, President and CEO, stated “ We are excited to expand our presence at Legacy Union with the acquisition of 6Hundred. Our 1.6 million square feet of commute-worthy office positions us to benefit from the strong demand we’re seeing as users gravitate to Legacy Union, which is ideally situated at the intersection of Charlotte’s Uptown and South End BBDs. With in-place rents more than 20% below market, we expect to deliver strong NOI and cash flow growth from our Legacy Union portfolio.

We plan to fund the acquisition of 6Hundred with proceeds from non-core asset sales over the next six months. Importantly, we expect this rotation of capital from non-core properties to 6Hundred – a best in-class property with a location second-to-none – will be neutral to 2027 FFO and accretive to cash flow, while simultaneously increasing our growth rate and improving our portfolio quality.”

The acquisition of 6Hundred at Legacy Union, which is subject to customary closing conditions, is scheduled to close in the next 30 days. The Company has posted earnest money deposits in the amount of $10 million that are non-refundable except in limited circumstances.

A presentation highlighting the acquisition of 6Hundred at Legacy Union can be accessed through the link below and in the Investors section of the Company’s website at www.highwoods.com.

6Hundred at Legacy Union

About Highwoods
Highwoods Properties, Inc., headquartered in Raleigh, is a publicly-traded (NYSE:HIW), fully-integrated office real estate investment trust (“REIT”) that owns, develops, acquires, leases and manages properties primarily in the best business districts (BBDs) of Atlanta, Charlotte, Dallas, Nashville, Orlando, Raleigh, Richmond and Tampa. Our vision is to be a leader in the evolution of commercial real estate for the benefit of our customers, our communities and those who invest with us. Our mission is to create environments and experiences that inspire our teammates and our customers to achieve more together. We are in the work-placemaking business and believe that by creating exceptional environments and experiences, we can deliver greater value to our customers, their teammates and, in turn, our shareholders. For more information about Highwoods, please visit our website at www.highwoods.com.

Forward-Looking Statements
Some of the information in this press release may contain forward-looking statements. Such statements include, in particular, statements about our plans, strategies and prospects such as the following: closing of the planned acquisition may not occur on the terms described in this press release or at all; the expected financial and operational results and the related assumptions underlying our expected results; the planned sales of non-core assets and expected pricing and impact with respect to such sales, including the tax impact of such sales; the anticipated total investment, projected leasing activity, estimated replacement cost and expected net operating income of acquired properties and properties to be developed; and expected future leverage of the Company. You can identify forward-looking statements by our use of forward-looking terminology such as “may,” “will,” “expect,” “anticipate,” “estimate,” “continue” or other similar words. Although we believe that our plans, intentions and expectations reflected in or suggested by such forward-looking statements are reasonable, we cannot assure you that our plans, intentions or expectations will be achieved.

Factors that could cause our actual results to differ materially from Highwoods’ current expectations include, among others, the following: the financial condition of our customers could deteriorate; our assumptions regarding potential losses related to customer financial difficulties could prove incorrect; counterparties under our debt instruments, particularly our revolving credit facility, may attempt to avoid their obligations thereunder, which, if successful, would reduce our available liquidity; we may not be able to lease or re-lease second generation space, defined as previously occupied space that becomes available for lease, quickly or on as favorable terms as old leases; we may not be able to lease newly constructed buildings as quickly or on as favorable terms as originally anticipated; we may not be able to complete development, acquisition, reinvestment, disposition or joint venture projects as quickly or on as favorable terms as anticipated; development activity in our existing markets could result in an excessive supply relative to customer demand; our markets may suffer declines in economic and/or office employment growth; increases in interest rates could increase our debt service costs; increases in operating expenses could negatively impact our operating results; natural disasters and climate change could have an adverse impact on our cash flow and operating results; 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 repay or refinance outstanding debt upon maturity; and the Company could lose key executive officers.

This list of risks and uncertainties, however, is not intended to be exhaustive. You should also review the other cautionary statements we make in “Risk Factors” set forth in our 2024 Annual Report on Form 10-K. Given these uncertainties, you should not place undue reliance on forward-looking statements. We undertake no obligation to publicly release the results of any revisions to these forward-looking statements to reflect any future events or circumstances or to reflect the occurrence of unanticipated events.