Highwoods Properties has agreed to acquire a portfolio of office assets from Preferred Apartment Communities for $769 million.
The core portfolio to be acquired consists of four class A office assets in Charlotte and Raleigh, N.C., and one mixed-use redevelopment site in Atlanta. The company has also agreed to acquire two noncore assets: a mezzanine loan related to a recently constructed office building in Atlanta and Armour Yards, a multi-building creative office project in Atlanta.
The core office buildings in Charlotte and Raleigh, which encompass 1.63 million square feet in total, were 95 percent leased as of Dec. 31, 2020, with rent collections of more than 99 percent during 2020.
Highwood’s plan is to ultimately fund the acquisition primarily by accelerating the sales of existing noncore assets. The company expects to return its balance sheet metrics to current levels by mid-2022.
Ted Klinck, president and CEO, stated, “The portfolio of properti
