Raleigh, North Carolina-based Highwoods Properties, a publicly traded real estate investment trust (REIT), announced this week that it had purchased Colonial Place I and II in Tampa, Florida for $56 million. While the seller's information was not disclosed, CBRE is known to have marketed Colonial Place I and II for lease.
Ed Fritsch, President and CEO of Highwoods Properties, said, "This acquisition further enhances the strength of our position in the highly desirable Westshore submarket where the majority of our Tampa assets are concentrated. It also creates the opportunity for value-creation through growing occupancy. We are also excited about "Highwoodtizing" and repositioning these assets, as we did with 4200 Cypress where we spent $2.4 million in building improvements, and rebranding this entire block in Westshore with our approximately 1,300 linear feet of frontage on I-275. This transaction is immediately accretive to FFO and reflects the synergies that will be achieved among these three properties through the sharing of staffing, procurement and parking resources."
The Class A office properties were 87% leased at the time of sale and include 371,726 rentable square feet of space with an adjacent covered parking garage. Highwoods noted that it will rebrand the two Colonial Place assets, along with 4200 Cypress, as Meridian One, Two and Three. According to a Triangle Business Journal article, Highwoods assumed no new debt in connection with the deal. It is funding the acquisition with proceeds from its ATM program, proceeds from its recent sale of other buildings, and borrowings under its revolving credit facility.
For more news and information visit Blumberg Capital Partners.
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