Highwoods Properties, has acquired the Legacy Union Parking Garage located at 720 South Church Street in Uptown Charlotte for a total investment of $111.5 million, including planned near-term building improvements. This 3,057 space garage supports the parking needs for 1.2 million square feet of Highwoods-owned office at Legacy Union, which consists of Bank of America Tower and 650 South Tryon, and is connected to these office buildings via a skybridge.
Approximately 70% of the annual revenue is derived from Legacy Union office customers leased on a long-term basis with a weighted average remaining contractual term of 9 years. Transient and special events revenue, largely due to events at the adjacent 75,000 seat Bank of America Stadium, account for the remainder of the garage’s revenues. The Legacy Union Parking Garage is expected to generate cash and GAAP net operating income of $8.0 million in the first four quarters following closing.
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Ted Klinck, President and CEO, stated “We are excited to expand our presence at Legacy Union in the Uptown Charlotte BBD with the acquisition of the Legacy Union Parking Garage. This strategic acquisition improves connectivity with our 1.2 million square feet of office customers at Legacy Union, while immediately strengthening our cash flows and improving our long-term growth rate.”
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.
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