Acquires Bloc83 in CBD Raleigh in Joint Venture with the North Carolina Investment Authority$21.0M Total Investment (at HIW 10% Share)492,000 Square Feet, 97% Leased_____________________________________
Acquires The Terraces in Preston Center BBD in Dallas in Joint Venture with Granite Properties$87.4M Total Investment (at HIW 80% Share)173,000 Square Feet, 98% Leased_____________________________________
Acquisitions to be Funded Primarily ThroughSales of Non-Core AssetsExpect Leverage-Neutral Rotation of Capital by Mid-2026_________________________________________
Plan Expected to Strengthen Long-Term Growth Trajectory Immediately Accretive to Cash FlowsNeutral to Current FFO Run Rate; Accretive over Long-Term_________________________________________
RALEIGH, N.C., Jan. 12, 2026 (GLOBE NEWSWIRE) -- Highwoods Properties, Inc. (NYSE:HIW) has acquired Bloc83, a two-building, 492,000 square foot mixed-use asset in CBD Raleigh, in a joint venture with the North Carolina Investment Authority and The Terraces, a 173,000 square foot office building in the Preston Center BBD of Dallas, in a joint venture with Granite Properties.
Ted Klinck, President and CEO, stated, "We are excited to expand our presence in Dallas and Raleigh with the addition of two best-in-class properties at attractive risk-adjusted yields with good long-term growth potential. The acquisition of The Terraces deepens our relationship with our partner in Dallas, Granite, and marks our entry into Preston Center, a BBD we identified for future expansion when we entered Dallas in 2022. Preston Center is the most supply-constrained BBD in the Dallas market with a healthy outlook for long-term rent growth. With in-place rents approximately 30% below market, there is significant NOI upside at The Terraces as leases roll during the next few years. Our Dallas portfolio is now projected to be approximately 7% of our total NOI upon stabilization of our development properties, which would make it our 5th largest market.
"Bloc83 is a property we have followed closely since it was first developed. Located in Raleigh's CBD and just a few blocks from our corporate headquarters, Bloc83 is an excellent strategic fit within our portfolio. The property is 97% leased, 17% higher than the downtown competitive set. We now own 2.0 million square feet in CBD Raleigh, which gives us flexibility to accommodate the evolving space needs of our existing customers and prospects. Additionally, we have expanded our roster of strategic investment partners with the formation of a new joint venture with the North Carolina Investment Authority.
"Our plan is to effectively match-fund our purchase of these best-in-class assets in the high-growth markets of Dallas and Raleigh by selling a select portfolio of non-core assets or properties where we believe value has been maximized. Importantly, once completed, our plan is expected to be roughly leverage-neutral, accretive to cash flows and neutral to our near-term FFO run-rate, while improving the quality of our portfolio and providing higher growth in cash flows and FFO over time."
Acquisition of Bloc83Bloc83 is a 492,000 square foot mixed-use asset that includes two 10-story best-in-class office buildings with 27,000 square feet of ground floor amenity retail located in CBD Raleigh. The building includes a rooftop terrace, customer lounge, fitness center, and interactive sports room with a golf simulator, among other on-site customer amenities. Bloc83, which delivered between 2019 and 2021, was 97% leased on a combined basis at December 31, 2025 with a weighted average lease term of 6.5 years.
The Company initially owns a 10% interest in the joint venture that was formed to acquire Bloc83. The North Carolina ...
