Highwoods Properties Sells RTP Office Complex for $58.7M
- Jul 30, 2014
by Adriana Pop, Associate Editor
In its second quarter earnings report, Highwoods Properties has announced the sale of the Research Commons Office complex in Research Triangle Park. The property, which consists of five buildings and a 13-acre future development site, sold to an undisclosed buyer for $58.7 million.
According to the Triangle Business Journal, the facilities at 79 T.W. Alexander Dr. were built between 1985 and 1999 and offer a total of 422,000 square feet of office space.
NC FAST program, Grifols, CSC Systems, Electronic Consulting Services, Entegrion, Triumfant and Nephrogrenex are among the property’s tenants, which was 82.7 percent leased at the time of sale.
In a statement, Highwoods’ president and CEO, Ed Fritsch, said that the company would record an $11.7 million third quarter gain from the sale of the office park.
During the second quarter, the company recorded 1.5 million square feet of office space lease renewals and expansions across its portfolio, a significant increase from its five-quarter average of 1 million square feet of leased space per quarter. The occupancy rate for the company’s properties was 90.8 percent in the second quarter, up from 89.2 percent in Q1 2014.
In the same report, Highwoods has raised the company’s forecast for the lower end of its 2014 occupancy, which it expects to reach between 91.8 percent and 92.5 percent by the end of the year, up from 91.3 percent to 92.5 percent last year.
The company’s funds from operations are also projected to rise from between $ 2.86 to $2.94 per share to $2.88 and $2.94 per share this year.
In other news, the Triangle Business Journal reports that a subsidiary of Family Video Movie Club of Glenview, Ill., the owners of the Family Video movie store chain, has acquired a three-story office building at 5811 Glenwood Ave. in Raleigh for $4.8 million.
The seller, EOR 5811 Glenwood Avenue LLC, was represented by Ben Kilgore and Jeff Glenn of CBRE-Raleigh and Ashton Williamson of CBRE-Hampton Roads.
At the time of the sale, the 37,257-square-foot property was 96 percent leased.
Photo credits: loopnet.com