Highwoods Properties, Inc. announced an agreement to acquire the Advance Auto Parts Tower, a 20-story, Class AA office tower located in Raleigh’s North Hills Best Business District (BBD). The 346,000 square foot, LEED-gold certified tower was delivered in 2020 and was 100% leased as of December 31, 2024.
The acquisition is strategic, as the tower is immediately adjacent to Highwoods-owned CAPTRUST Tower, creating a combined presence of nearly 650,000 square feet of Class AA office space in the vibrant North Hills BBD. The acquired property has a weighted average lease term of 8.2 years.
Highwoods plans to fund the acquisition on a leverage-neutral basis, utilizing proceeds from recent non-core asset sales in Tampa. This capital rotation is expected to be neutral to near-term FFO, immediately accretive to cash flows, and will improve the company's growth rate and portfolio quality.
President and CEO Ted Klinck highlighted the expansion in North Hills, emphasizing the strong demographics attracting businesses and residents to Raleigh. The acquisition is subject to customary closing conditions, with closing scheduled within the next 30 days.
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