Raleigh-based Highwoods Properties announced Tuesday that it has acquired its joint venture partner's 60 percent interest in five office buildings in Orlando for $113.3 million.
The buildings include 1.3 million square feet in Orlando's central business district.
The buildings are valued at $195.9 million, a price that includes $9 million in planned improvements, according to Highwoods. The real estate investment trust's total investment in the deal is expected to be $117.5 million.
The properties are 82 percent leased. They are expected to generate full year cash and GAAP net operating income of $14.0 million and $15.4 million, respectively.
"The Orlando office market is in the early stage of recovery and, therefore, we are very enthused about the timing of this transaction given the blend of pricing and incoming leasing tailwinds," said Highwoods CEO Ed Fritsch, in a statement.
Highwoods now owns 1.6 million square feet in Orlando. The company reports second quarter earnings on Thursday.