Highwoods Properties to acquire 6Hundred at Legacy Union for $223M

Highwoods Properties (HIW) reported it has agreed to acquire 6Hundred at Legacy Union, a 24-story office tower located in Charlotte’s Uptown CBD, for a total expected investment of $223M. 6Hundred at Legacy Union, which delivered in 2025 and is currently 84% leased with a weighted average lease term of over 12 years, is an office tower encompassing 411,000 square feet with a planned LEED gold certification and in-building parking that can accommodate 832 vehicles. 6Hundred is immediately adjacent and connected to Highwoods-owned Bank of America Tower at Legacy Union and SIX50 South Tryon at Legacy Union. This acquisition will increase Highwoods portfolio at Legacy Union to 1.6M square feet of class AA office with over 4,200 structured parking spaces. The company’s total investment includes $8.5M of planned near-term building improvements and anticipated leasing capital expenditures to bring the property to stabilization and is net of $15.7M of free rent and other rent-related credits anticipated to be received from the seller at closing. The company noted that under GAAP, such credits are recorded as a reduction in the investment cost rather than as rental income. The company estimates annual net operating income to be approximately $17.5M to $18.5M on both a GAAP and cash basis upon stabilization, which is projected to occur during 2027 on a GAAP basis and 2028 on a cash basis. During 2026, 6Hundred at Legacy Union is expected to generate approximately $10M of GAAP net operating income. The company plans to fund the acquisition of 6Hundred at Legacy Union on roughly a leverage-neutral basis over the next six months using the proceeds from non-core asset sales. Since October 1, the company has sold $37M of non-core assets.