This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Highwoods Properties Sells Non-Core Assets In Winston-Salem And Greensboro For $24.9 Million

Highwoods Properties, Inc. (NYSE: HIW), the largest owner and operator of suburban office properties in the Southeast and NAIOP’s 2009 Developer of the Year, today announced that it has sold, in separate transactions, Madison Park, a non-core office park in Winston-Salem, for $12.9 million, and Chimney Rock, a non-core industrial park in Greensboro, for $12.0 million. Inclusive of these dispositions, Highwoods has sold $125 million of non-core assets in 2010, in-line with its previously stated guidance of $50 million to $150 million.

Ed Fritsch, President and Chief Executive Officer of Highwoods Properties, said, “We are pleased to complete the sale of these non-core assets and further focus our resources on infill locations in core markets. One of our long-stated goals has been to exit Winston-Salem and, since January 2005, inclusive of the Madison Park sale, we have reduced the square footage we own in Winston-Salem from 2.8 million square feet to 818,000 square feet, a 71% reduction. We are also pleased to have sold our Chimney Rock assets as these older, industrial buildings were not strategic to our core Greensboro holdings. Today, our remaining industrial holdings in Greensboro include 35 buildings encompassing 2.5 million square feet that are adjacent to the airport and are, on average, 14 years old and 92.9% occupied.

Madison Park

Madison Park consists of seven office buildings encompassing 472,200 square feet that are, on average, 25 years old and 51% occupied. Madison Park was expected to generate $1.2 million of net operating income for full year 2010.

As part of the Madison Park transaction, Highwoods received $4.5 million in cash and provided $8.4 million in non-recourse first mortgage seller financing. The three-year, interest-only note carries a 6.0% average interest rate. Assuming no default exists, the note can be extended by the buyer for two additional one-year periods, subject to an increase in the interest rate to 7.0% in the fourth year and to 8.0% in the fifth year. Additionally, Highwoods provided a secured credit facility of up to $1.65 million to be used to fund 50% of future leasing-related capital expenditures for currently vacant space. This facility has the same terms as the $8.4 million first mortgage financing plus is fully recourse to the buyer. The approximate $0.4 million gain on the sale of Madison Park will be deferred until the seller financing is repaid. Highwoods will provide property management services for these assets for customary fees.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,387.21 -291.49 -1.65%
S&P 500 2,029.55 -27.54 -1.34%
NASDAQ 4,681.4970 -90.2660 -1.89%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs