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Highwoods pays $146.7 million for Atlanta office tower

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Raleigh-based Highwoods Properties announced Friday that it has acquired a 492,000-square-foot office tower in Atlanta's Buckhead neighborhood for $146.7 million.

Two Alliance Center, a 29-story building, is 90 percent occupied and is expected to generate $11.1 million in operating income in 2013.

"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 percent discount to replacement cost," Highwoods CEO Ed Fritsch said in a statement.

"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."

The purchase price includes $800,000 in planned improvements Highwoods will make to the building.

Highwoods has been extremely active in recent months, both selling older assets and acquiring newer ones. A number of the deals have involved assets in Atlanta, where Highwoods now owns 6.4 million square feet of office and industrial space.

Highwoods announced in July plans to sell two build-to-suit  properties in Atlanta that it constructed for the federal goverment.

A year ago, Highwoods paid $86.3 million for Riverwood 100, a 24-story building in Atlanta with a half-million square feet of office space.


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Big Investment

Highwoods have been investing on smart projects recently and this one also proves to be a good deal and will give them a lot of profit in future.

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About the blogger

Business reporter David Bracken came to the N&O in 2004. He covers commercial and residential real estate. Contact David at 919-829-4548 or e-mail him.