RALEIGH, N.C., Dec. 16, 2022 (GLOBE NEWSWIRE) — Highwoods Properties, Inc. (NYSE:HIW) has acquired McKinney & Olive, a 557,000 square foot trophy mixed-use asset in the heart of Uptown Dallas, in a 50/50 joint venture with Granite Properties.
McKinney & Olive, which was delivered in 2016 and is currently 99% leased, offers 507,000 square feet of multi-customer office space, 50,000 square feet of retail space and a one-acre piazza surrounded by walkable amenities steps away from Klyde Warren Park and the Dallas Arts District. McKinney & Olive, which has easy access to Dallas North Tollway, Woodall Rogers Freeway, I-75 and public transportation, is located just four blocks from 23Springs, a mixed-use development encompassing 626,000 square feet of multi-customer office and 16,000 square feet of retail that the Company is developing in a 50/50 joint venture with Granite Properties.
Ted Klinck, President and CEO, stated, “We are thrilled to expand our presence in the dynamic Dallas market by once again partnering with Granite Properties to acquire this landmark office tower in Uptown Dallas. McKinney & Olive is a solid bull’s eye with its prime infill location in a top tier submarket and financially sound, diversified customer base. Plus, with rents estimated to be 35% below-market, McKinney & Olive provides meaningful NOI upside potential.”
“We have long-emphasized the importance of having a strong balance sheet with dry powder to capitalize on exactly this type of strategic opportunity – acquiring a singularly iconic asset such as McKinney & Olive at or below estimated replacement cost. We remain committed to maintaining a strong balance sheet and plan to focus primarily on accelerating our non-core dispositions in 2023 as the investment sales market stabilizes,” added Mr. Klinck.
The joint venture’s total investment (at 100%) is expected to be $394.7 million, which includes $1.7 million of near-term building improvements and $2.0 million of transaction costs. During 2023, McKinney & Olive is expected to generate cash net operating income of $22.0 million (at 100%) and GAAP net operating income of $26.2 million (at 100%).
A presentation highlighting the acquisition can be accessed through the link below and in the Investors section of the Company’s website at www.highwoods.com.
About Highwoods
Highwoods Properties, Inc., headquartered in Raleigh, is a publicly-traded (NYSE:HIW) real estate investment trust (“REIT”) and a member of the S&P MidCap 400 Index. The Company is a fully-integrated office REIT that owns, develops, acquires, leases and manages properties primarily in the best business districts (BBDs) of Atlanta, Charlotte, Dallas, Nashville, Orlando, Raleigh, Richmond and Tampa. For more information about Highwoods, please visit our website at www.highwoods.com.
