Highwoods acquires Legacy Union Parking Garage in Charlotte for $111.5m

RALEIGH - Highwoods Properties, Inc. (NYSE:HIW), a $3.2 billion market cap REIT with a robust 6.8% dividend yield and 32 consecutive years of dividend payments according to InvestingPro, has acquired the Legacy Union Parking Garage in Uptown Charlotte for $111.5 million, including planned near-term building improvements, the company announced Thursday.

The 3,057-space parking facility at 720 South Church Street supports 1.2 million square feet of Highwoods-owned office space at Legacy Union, which includes Bank of America Tower and 650 South Tryon. The garage connects to these buildings via a skybridge.

According to the company, approximately 70% of the garage’s annual revenue comes from Legacy Union office customers with long-term leases averaging 9 years of remaining contractual term. The remainder derives from transient and special events revenue, largely from events at the adjacent 75,000-seat Bank of America Stadium.

Highwoods expects the garage to generate $8.0 million in cash and GAAP net operating income during the first four quarters following the transaction’s closing.

"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," said Ted Klinck, President and CEO of Highwoods, in a press release statement.

Highwoods Properties is a publicly-traded office real estate investment trust headquartered in Raleigh that owns, develops, acquires, leases and manages properties primarily in business districts across eight southeastern and mid-Atlantic cities.

In other recent news, Highwoods Properties reported its Q2 2025 earnings with a slight beat on earnings per share (EPS), posting $0.17 against the forecasted $0.16, representing a 6.25% surprise. However, the company faced a minor shortfall in revenue, recording $200.6 million compared to the anticipated $201.59 million, resulting in a -0.49% revenue surprise. In addition to its earnings report, Highwoods Properties announced an extension of its $200 million unsecured bank term loan, moving the maturity date from May 2026 to January 2029. The company retains the option to extend the loan term by two additional years, contingent upon no defaults. The interest rate for this loan is set at the Secured Overnight Financing Rate (SOFR) plus 95 basis points, depending on the company’s credit ratings from Moody’s Investors Service or Standard & Poor’s Ratings Services. These developments were disclosed in a statement based on a filing with the Securities and Exchange Commission.

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