HighwoodsProperties Inc. purchased the 11-story in Raleigh,N.C.'s central business district, confirming an earlier report.
The company said it expects its total investment in theclass A office tower to hit $83.5 million, including $5.1 million in plannedbuilding improvements and leasing CapEx. It will write off $300,000 inacquisition costs during the third quarter.
Highwoods projects stabilization of the 70%-leased buildingto take place in 2018, at which time annual cash and GAAP net operating incomeis estimated to come to about $6.0 million.
The 243,000-square-foot property brings Highwoods' RaleighCBD office portfolio to 913,000 square feet. It also owns a development sitethat can accommodate as much as 300,000 square feet of class A office space.
In addition, Highwoods noted that it pulled in $80.5 millionin net proceeds from the sale of 1,550,000 common shares under itsat-the-market equity offering program after its second-quarter earningsrelease. The divested shares had a per-share gross sales price of $52.79 onaverage.