Highwoods Properties Reports Purchase of JV Partner's 57% Interest in Two Atlanta Office Buildings

Highwoods Properties, Inc. HIW has acquired its joint venture partner's 57% interest in Glenlake North and South Towers, two Class A, 10-story office buildings with structured parking, for a purchase price of $45.4 million. Located in Atlanta's Central Perimeter submarket with excellent access to GA 400, the properties, encompassing 505,000 square feet, are valued at $80.6 million, including $1.0 million of planned near-term building improvements. This equates to a total asset value of $159 per square foot, a 30+% discount to estimated replacement cost. The Company's total incremental investment is expected to be $46.0 million. The following table sets forth details regarding the transaction ($ in millions): Real Estate Value 100% 57% -------- -------- Purchase Price $ 79.6 $ 45.4 Near-Term Building Improvements 1.0 0.6 -------- -------- Total Investment $ 80.6 $ 46.0 ======== ======== Equity Value Purchase Price $ 79.6 $ 45.4 Less Debt -37.6 -21.4 -------- -------- Equity $ 42.0 $ 24.0 ======== ======== The properties are 82% leased and are expected to generate full-year cash and GAAP net operating income of $5.1 million and $6.0 million, respectively. Approximately $0.2 million of acquisition costs will be expensed in the third quarter.