Highwoods Properties, which has been seeking ways to take advantage of its strong balance sheet, announced today that it has invested $300 million to acquire properties in Pittsburgh and Atlanta.
The Pittsburgh acquisition is particularly noteworthy for the Raleigh real estate investment trust, as it represents the first new market Highwoods has entered since 1998, when it bought property in Kansas City.
Highwoods is among the largest office landlords in the Southeast.
Highwoods paid $214.1 million for PPG Place in Pittsburgh, a six building complex that includes 1.54 million square feet of office space.
That price includes $17.1 million in building improvements and $8.1 million in tenant improvements promised under existing leases.
PPG Place is 81.2 percent leased.
In Atlanta, Highwoods bought Riverwood 100, a 24-story building with half a million square feet of office space, for $86.3 million.
That price includes $5.6 million in planned building improvements and $2.4 million in tenant improvements.
Riverwood 100 is 87 percent leased.