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Highwoods pushing into Charlotte, exiting 2 markets in major 'rotation plan'

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Highwoods pushing into Charlotte, exiting 2 markets in major 'rotation plan'

Highwoods Properties Inc. will enter Charlotte, N.C., and exit Greensboro, N.C., and Memphis, Tenn., as part of a comprehensive new investment strategy focusing on so-called Best Business District office markets detailed Aug. 21.

The Raleigh, N.C.-headquartered real estate investment trust will pay $436 million for the 841,000-square-foot, 90%-leased Bank of America Tower at Legacy Union, now under construction in Charlotte's Uptown central business district, and pay for the purchase in part with the planned sales in Greensboro and Memphis through mid-2020, which the company expects to approximate the $436 million purchase price. It will close its division offices in those two cities.

The company expects the Bank of America Tower acquisition, alongside phase one of the planned asset sales and personnel cost savings, to be "roughly neutral" to the company's current funds from operations run rate.

Long term, the company plans to fully exit Greensboro and Memphis. In Greensboro, it currently owns 2.7 million square feet of industrial space, 1.2 million square feet of office space and 30 acres of development land. In Memphis, Highwoods holds 1.7 million square feet of office space.

The Bank of America Tower acquisition is expected to close in November.