Highwoods Agrees to Acquire 6Hundred at Legacy Union in CBD Charlotte
Rhea-AI Summary
Highwoods Properties (NYSE:HIW) agreed to acquire 6Hundred at Legacy Union, a 24-story, Class AA office tower in Charlotte’s Uptown CBD, for a $223 million total expected investment. The 411,000-square-foot building delivered in 2025, is 84% leased with a weighted average lease term over 12 years, and includes 832 parking spaces and planned LEED Gold certification.
The investment includes $8.5 million of near-term improvements and is net of $15.7 million of seller rent credits. Highwoods projects stabilization with annual NOI $17.5M–$18.5M (GAAP and cash) and expects 2026 GAAP NOI of about $10M. Closing is expected within 30 days; funding will be leverage-neutral using proceeds from non-core asset sales.
Positive
- Acquisition value of $223 million
- 411,000 square feet added to portfolio
- Property 84% leased with >12-year average lease term
- Estimated stabilized annual NOI $17.5M–$18.5M
- Increases Legacy Union portfolio to 1.6 million square feet
Negative
- Includes $8.5 million near-term improvement and leasing costs
- Investment net of $15.7 million seller rent credits reduces cost basis
- Stabilization projected in 2027 GAAP and 2028 cash (timing risk)
- Earnest money $10 million non-refundable except limited circumstances
News Market Reaction
On the day this news was published, HIW gained 1.01%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
411,000 Square Feet,
Closing Scheduled for Next 30 Days
RALEIGH, N.C., Nov. 17, 2025 (GLOBE NEWSWIRE) -- Highwoods Properties, Inc. (NYSE:HIW) today reported it has agreed to acquire 6Hundred at Legacy Union, a 24-story, Class AA office tower located in Charlotte’s Uptown CBD, for a total expected investment of
6Hundred at Legacy Union, which delivered in 2025 and is currently
The Company’s total investment includes
The Company plans to fund the acquisition of 6Hundred at Legacy Union on roughly a leverage-neutral basis over the next six months using the proceeds from non-core asset sales. Since October 1, 2025, the Company has sold
Ted Klinck, President and CEO, stated “We are excited to expand our presence at Legacy Union with the acquisition of 6Hundred. Our 1.6 million square feet of commute-worthy office positions us to benefit from the strong demand we’re seeing as users gravitate to Legacy Union, which is ideally situated at the intersection of Charlotte’s Uptown and South End BBDs. With in-place rents more than
We plan to fund the acquisition of 6Hundred with proceeds from non-core asset sales over the next six months. Importantly, we expect this rotation of capital from non-core properties to 6Hundred – a best in-class property with a location second-to-none – will be neutral to 2027 FFO and accretive to cash flow, while simultaneously increasing our growth rate and improving our portfolio quality.”
The acquisition of 6Hundred at Legacy Union, which is subject to customary closing conditions, is scheduled to close in the next 30 days. The Company has posted earnest money deposits in the amount of
A presentation highlighting the acquisition of 6Hundred at Legacy Union can be accessed through the link below and in the Investors section of the Company’s website at www.highwoods.com.
About Highwoods
Highwoods Properties, Inc., headquartered in Raleigh, is a publicly-traded (NYSE:HIW), fully-integrated office real estate investment trust (“REIT”) that owns, develops, acquires, leases and manages properties primarily in the best business districts (BBDs) of Atlanta, Charlotte, Dallas, Nashville, Orlando, Raleigh, Richmond and Tampa. Our vision is to be a leader in the evolution of commercial real estate for the benefit of our customers, our communities and those who invest with us. Our mission is to create environments and experiences that inspire our teammates and our customers to achieve more together. We are in the work-placemaking business and believe that by creating exceptional environments and experiences, we can deliver greater value to our customers, their teammates and, in turn, our shareholders. For more information about Highwoods, please visit our website at www.highwoods.com.
Forward-Looking Statements
Some of the information in this press release may contain forward-looking statements. Such statements include, in particular, statements about our plans, strategies and prospects such as the following: closing of the planned acquisition may not occur on the terms described in this press release or at all; the expected financial and operational results and the related assumptions underlying our expected results; the planned sales of non-core assets and expected pricing and impact with respect to such sales, including the tax impact of such sales; the anticipated total investment, projected leasing activity, estimated replacement cost and expected net operating income of acquired properties and properties to be developed; and expected future leverage of the Company. You can identify forward-looking statements by our use of forward-looking terminology such as “may,” “will,” “expect,” “anticipate,” “estimate,” “continue” or other similar words. Although we believe that our plans, intentions and expectations reflected in or suggested by such forward-looking statements are reasonable, we cannot assure you that our plans, intentions or expectations will be achieved.
Factors that could cause our actual results to differ materially from Highwoods’ current expectations include, among others, the following: the financial condition of our customers could deteriorate; our assumptions regarding potential losses related to customer financial difficulties could prove incorrect; counterparties under our debt instruments, particularly our revolving credit facility, may attempt to avoid their obligations thereunder, which, if successful, would reduce our available liquidity; we may not be able to lease or re-lease second generation space, defined as previously occupied space that becomes available for lease, quickly or on as favorable terms as old leases; we may not be able to lease newly constructed buildings as quickly or on as favorable terms as originally anticipated; we may not be able to complete development, acquisition, reinvestment, disposition or joint venture projects as quickly or on as favorable terms as anticipated; development activity in our existing markets could result in an excessive supply relative to customer demand; our markets may suffer declines in economic and/or office employment growth; increases in interest rates could increase our debt service costs; increases in operating expenses could negatively impact our operating results; natural disasters and climate change could have an adverse impact on our cash flow and operating results; we may not be able to meet our liquidity requirements or obtain capital on favorable terms to fund our working capital needs and growth initiatives or repay or refinance outstanding debt upon maturity; and the Company could lose key executive officers.
This list of risks and uncertainties, however, is not intended to be exhaustive. You should also review the other cautionary statements we make in “Risk Factors” set forth in our 2024 Annual Report on Form 10-K. Given these uncertainties, you should not place undue reliance on forward-looking statements. We undertake no obligation to publicly release the results of any revisions to these forward-looking statements to reflect any future events or circumstances or to reflect the occurrence of unanticipated events.
| Contact: | Brendan Maiorana |
| Executive Vice President and Chief Financial Officer | |
| brendan.maiorana@highwoods.com | |
| 919-872-4924 |
FAQ
What is Highwoods (HIW) buying in the 6Hundred at Legacy Union deal?
When is the Highwoods (HIW) acquisition of 6Hundred at Legacy Union expected to close?
How leased is 6Hundred at Legacy Union and what leases remain?
What are the projected NOI figures from the HIW acquisition of 6Hundred?
How will Highwoods (HIW) fund the $223M purchase of 6Hundred?
What immediate capital needs does the 6Hundred acquisition include?
Will the 6Hundred acquisition change Highwoods’ Legacy Union footprint?
