Highwoods Properties, Inc. has successfully closed the acquisition of the Advance Auto Parts Tower in Raleigh's North Hills Best Business District. The total investment for this 346,000 square foot, Class AA office tower amounted to $138 million.
The tower, which was 100% leased at December 31, 2024, with an 8.2-year weighted average lease term, is projected to generate cash net operating income of $11.0 million and GAAP net operating income of $11.9 million in the first four quarters following the closing.
This acquisition reinforces Highwoods' strategy of investing in high-quality, commute-worthy properties in its target Sunbelt markets. The transaction was funded using proceeds from non-core asset sales, maintaining a leverage-neutral position.
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