Highwoods Properties Acquires 636KSF Raleigh Office Complex

REIT Highwoods Properties recently announced the acquisition of an office complex in Raleigh, N.C., for $131 million.

After acquiring its partner’s 75% share in the complex, the company has now gained full ownership of the office property dubbed The Forum. The joint partnership — which, according to Commercial Property Executive, comprises Highwoods Properties and an entity lead by Scott Prizer of EII Capital Management — had acquired The Forum in 2008.

The property spans 636,000 square feet of Class A Raleigh office space and is located at 8521, 8529, 8537 and 8609 Six Forks Road. The complex is comprised of six buildings in total that were constructed between 1985 and 2006. At the time of sale, The Forum had a 91% lease rate, with an average lease term of six years. Tenants enjoy charming walkways and a parking ratio of four spaces per 1,000 square feet of office space. And, while amenities vary from building to building — including cafes, fitness centers and conference suites — two buildings in the complex (Forum 2 and Forum 4) have recently renovated lobbies. There are also plans for an improvement project for the whole complex, which is expected to cost $9.5 million.

The office complex also benefits from its location in an area with welcoming suburban neighborhoods for future employees. Specifically, there are four shopping centers within one mile of the property. Likewise, recreation activities in the area include varied dining and shopping options; gyms; and the sporting and camping opportunities offered by the nearby Falls Lake State Park.

Meanwhile, situated one mile from I-540 and approximately 11 miles from Raleigh-Durham International Airport, The Forum also offers prime logistical opportunities. The property is also ideally located close to other office hotspots, including less than 10 miles from the metro’s downtown and close to Research Triangle Park.

The acquisition is part of Highwoods Properties’ strategy to focus on its best business districts, President & CEO, Ted Klinck, explained. The REIT sold other non-core assets to fund this policy, including the recent sale of a 100,000-square-foot office space in Atlanta.