The buildings - in Richmond, VA, predominantly single-story, 90.6% leased, expected to generate $3.5M in cash this year, and totaling 359K square feet - were sold in two separate deals for $40.7M, and generated gains of $17.7M.
CEO Ed Fritsch: "In our ongoing focus on the culling of non-core, non-differentiating assets, the disposition of these properties fits well with this strategy. Richmond is an important market for our Company, particularly the West End where our assets are heavily concentrated and which have consistently performed well throughout the cycles."
After the sales, Highwoods (NYSE:HIW) owns or has an interest in 26 Richmond office properties, totaling 2.3M square feet. Their average occupancy is 95%.
YTD, the company has sold $99.4M of buildings for gains of $29.4M.