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Executes Lease with Asurion for Build-to-Suit
$285M Total Highwoods Investment
551,000 Square Feet
RALEIGH, N.C., July 23, 2018 (GLOBE NEWSWIRE) -- Highwoods Properties, Inc. (NYSE:HIW) announced today it has signed a lease with Asurion, a leader in technology services and a new customer for Highwoods, to develop its headquarters in CBD Nashville, one of the city’s BBDs (Best Business Districts).
Highwoods total expected investment for this development is $285 million and will encompass approximately 551,000 square feet, including approximately 9,000 square feet of street-level retail. The project, which will seek LEED designation, will be developed on a 4.2-acre parcel located at Church Street and 11th Avenue North that was acquired by Highwoods early this year.
The project is 98.3% pre-leased overall with the office portion to be fully occupied by Asurion under a long-term lease. The project will consist of two structures, one of 9 stories and the other 8 stories, built atop a six-level, 3.5/1,000 parking podium, including portions below and above grade. The two mid-rise buildings will provide Asurion with a horizontal campus in an urban environment with a multi-faceted lobby connecting both structures along with sky bridges at the 5th and 7th floors.
The development will enable Asurion to consolidate four existing facilities from the greater Nashville area into a single location, with access from both Church Street and 11th Avenue North. Located on the Gulch Greenway, the development will serve as a connector for the Gulch and Capitol View areas.
Construction is scheduled to begin in the first quarter of 2019 with a fourth quarter 2021 targeted completion date.
Ed Fritsch, President and Chief Executive Officer of Highwoods Properties, said, “We’re thrilled to announce we have a fully executed, mutually beneficial agreement on this signature CBD project. We look forward to a long-term relationship with such a high-quality, Nashville-based technology leader.”
A brief presentation outlining this transaction can be accessed through the link below or on the Investors section of the Highwoods website at www.highwoods.com.
With the addition of the Asurion project, Highwoods development pipeline has grown to 2.0 million square feet representing an investment of approximately $725 million that is 92% pre-leased on a dollar weighted basis. Highwoods is the largest office developer/landlord in the greater Nashville area. Signature local assets include The Pinnacle at Symphony Place, Bridgestone Tower, LifePoint Health’s hospital support center and the corporate headquarters for Mars Petcare (currently under construction).
Highwoods Properties, Inc., headquartered in Raleigh, is a publicly-traded (NYSE:HIW) real estate investment trust (“REIT”) and a member of the S&P MidCap 400 Index. Highwoods is a fully-integrated office REIT that owns, develops, acquires, leases and manages properties primarily in the best business districts (BBDs) of Atlanta, Greensboro, Memphis, Nashville, Orlando, Pittsburgh, Raleigh, Richmond and Tampa. For more information about Highwoods, please visit our website at www.highwoods.com.
Certain matters discussed in this press release are forward-looking statements within the meaning of the federal securities laws, such as the expected cost, timing and impact of Highwoods development activity. These statements are distinguished by use of the words "will," “plan,” “anticipate,” "expect," "intend" and words of similar meaning. Although Highwoods believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.
Factors that could cause actual results to differ materially from Highwoods current expectations include, among others, the following: development activity by competitors in existing markets could result in excessive supply of properties relative to customer demand; development, acquisition, reinvestment, disposition or joint venture projects may not be completed as quickly or on as favorable terms as anticipated; Highwoods may not be able to lease or re-lease second generation space quickly or on as favorable terms as old leases; Highwoods markets may suffer declines in economic growth; Highwoods may not be able to lease newly constructed buildings as quickly or on as favorable terms as originally anticipated; unanticipated increases in interest rates could increase debt service costs; unanticipated increases in operating expenses could negatively impact Highwoods net operating income; Highwoods may not be able to meet its liquidity requirements or obtain capital on favorable terms to fund its working capital needs and growth initiatives or to repay or refinance outstanding debt upon maturity; Highwoods could lose key executive officers; and others detailed in Highwoods 2017 Annual Report on Form 10-K and subsequent SEC reports.
Vice President, Finance and Investor Relations