Highwoods Properties announced the purchase of 6Hundred at Legacy Union, a 24‑story Class AA office tower in Charlotte’s Uptown core. The 411,000‑square‑foot building sits adjacent to Highwoods‑owned Bank of America Tower and SIX50 South Tryon and is 84 % leased with a weighted average lease term exceeding 12 years.
The deal is priced at $223 million, including $8.5 million earmarked for near‑term improvements and leasing capital expenditures. The seller is providing $15.7 million in free‑rent and other rent‑related credits, effectively reducing the net cost. Highwoods projects the tower to generate $17.5 million to $18.5 million in annual net operating income on both GAAP and cash bases once stabilization is achieved, with GAAP stabilization expected in 2027 and cash stabilization in 2028. In 2026, the tower is projected to produce roughly $10 million in GAAP NOI.
Strategically, the acquisition consolidates Highwoods’ presence at Legacy Union, expanding the company’s portfolio at the campus to 1.6 million square feet of Class AA office space and adding more than 4,200 structured parking spaces. The move capitalizes on the fact that in‑place rents in the Charlotte market are more than 20 % below current market levels, positioning the company to capture significant NOI and cash‑flow upside as tenants upgrade to the new, modern tower.
Highwoods is financing the transaction on a leverage‑neutral basis over the next six months, using proceeds from non‑core asset sales. The company has already sold $37 million of non‑core assets since October 1 2025, underscoring its disciplined capital‑recycling strategy and its focus on investing in high‑quality, “commute‑worthy” assets in Sunbelt best business districts.
In the context of recent performance, Highwoods reported Q3 2025 revenue of $201.8 million, missing analyst expectations of $203.4 million, and earnings per share of $0.12 versus a consensus of $0.14. Despite the miss, the company raised its full‑year 2025 FFO outlook, signaling confidence in its portfolio and the upside from acquisitions such as 6Hundred.
CEO Ted Klinck said the acquisition “strengthens Highwoods’ position in a market where in‑place rents are more than 20 % below current market levels. The move will deliver strong NOI and cash‑flow growth from our Legacy Union portfolio, further elevating the company’s portfolio quality and supporting our broader strategy of portfolio enhancement and growth in Sunbelt markets.”
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