Highwoods Properties, Inc. (HIW: Quote) said Friday that it has acquired Two Alliance Center, a 29-story, 492,000 square foot, Class A office building with structured parking located in the heart of the Buckhead submarket of Atlanta.
The company's all-in investment is expected to be $146.7 million, or $298 per square foot, which includes $0.8 million of planned near-term building improvements.
Two Alliance Center is 90 percent occupied and is expected to generate full year 2013 GAAP net operating income of $11.1 million. The company also noted that about $0.6 million of expensed acquisition costs will be recorded in the third quarter.
The Company funded the acquisition of Two Alliance Center with proceeds from its ATM programs, borrowings under its revolving credit facility and available cash.
Ed Fritsch, president and chief executive officer of Highwoods, said, "This investment garners us one of the best Class A office buildings in the southeast, a new building with a well-diversified rent roll that we acquired at a 10% discount to replacement cost. The building has an average remaining lease term of ten years and no lease expirations until 2017, when less than 24,000 square feet is scheduled to expire."
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by RTT Staff Writer
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