Highwoods Properties Pays $131M for Raleigh Office Complex

The REIT acquired its joint-venture partner’s 75 percent interest in The Forum.
The Forum

Highwoods Properties has gained full ownership of The Forum, a 636,000-square-foot office complex in Raleigh, N.C., for $131.3 million. The company acquired the 75 percent interest of its joint venture partner, which according to public records, is an entity led by EII Capital Management Inc.’s Scott Prizer. The partnership acquired the asset back in 2008.

Located at 8521, 8529, 8537, 8601 and 8609 Six Forks Road, the Class A property comprise six buildings completed between 1985 and 2006. The complex was 91 percent leased, with an average lease term of six years, and is planned to undergo improvements worth $9.5 million.

The asset is a mile from Interstate 540, some 11 miles from Raleigh-Durham International Airport and less than 10 miles from the metro’s downtown. Last February, Highwoods welcomed Martin Marietta as the sole tenant at GlenLake Seven, a 125,000-square-foot office building in Raleigh, N.C.

Focusing on Strategy

The transaction is the latest example of Highwoods’ strategy to focus on the REIT’s best business districts, President & CEO Ted Klinck explained. He added that the funding for the acquisitions came from the disposition of non-core assets.  

107 Charles W. Grant Parkway

Part of the strategy was the sale of a 100,000-square-foot office building in Atlanta for $30.7 million. The property was completed in 2008 as a build-to-suit for the Federal Aviation Administration, which currently fully leases the asset. Located at 107 Charles W. Grant Parkway, the four-story building is 2 miles from the Hartsfield-Jackson Atlanta International Airport, less than 6 miles from the intersection of interstates 75 and 285, as well as almost 9 miles south of downtown Atlanta.