Highwoods Properties buys Legacy Union Parking Garage in Charlotte for $112M

Highwoods Properties acquired the Legacy Union Parking Garage in Charlotte for $111.5 million, enhancing their footprint in the area where they manage 1.2 million square feet of office space.

The parking garage, which has 3,057 spaces, is expected to generate $8 million in cash and GAAP net operating income in its first year.

CEO Ted Klinck emphasized that this acquisition strengthens connections with office clients and supports long-term growth and cash flow stability for the company.

Following the acquisition announcement, shares of Highwoods Properties (HIW) saw a 1.6% drop in after-hours trading.

Investment Recommendation Rating: Strong Buy

Highwoods Properties (NYSE: HIW) has successfully procured the Legacy Union Parking Garage in Charlotte, North Carolina for a total of $111.5 million, as announced on Thursday.

This parking facility, which boasts 3,057 spaces, is strategically situated at 720 South Church Street in Uptown Charlotte, catering to the parking requirements of Highwoods’ 1.2 million square feet of office space within the Legacy Union complex.

The Legacy Union Parking Garage is projected to yield an impressive $8 million in cash and GAAP net operating income during the first four quarters following its acquisition.

Ted Klinck, President and CEO of Highwoods Properties, remarked, "This tactical acquisition enhances our connectivity with our office clientele at Legacy Union. It not only bolsters our cash flows but also promotes our long-term growth prospects."

Details regarding the timing of the acquisition have not been disclosed. Following the announcement, HIW shares experienced a decline of 1.6% in after-hours trading.