Highwoods Properties acquires Bloc83, The Terraces

5 days ago 3

TipRanks

Tue, January 13, 2026 astatine 6:27 AM CST 2 min read

Highwoods Properties (HIW) has acquired Bloc83, a two-building, 492,000 quadrate ft mixed-use plus successful CBD Raleigh, successful a associated task with the North Carolina Investment Authority and The Terraces, a 173,000 quadrate ft bureau gathering successful the Preston Center BBD of Dallas, successful a associated task with Granite Properties. Bloc83 is simply a 492,000 quadrate ft mixed-use plus that includes 2 10-story best-in-class bureau buildings with 27,000 quadrate feet of crushed level amenity retail located successful CBD Raleigh. The gathering includes a rooftop terrace, lawsuit lounge, fittingness center, and interactive sports country with a play simulator, among different on-site lawsuit amenities. Bloc83, which delivered betwixt 2019 and 2021, was 97% leased connected a combined ground astatine December 31, 2025 with a weighted mean lease word of 6.5 years. The Company initially owns a 10% involvement successful the associated task that was formed to get Bloc83. The North Carolina Investment Authority, a caller strategical concern spouse for Highwoods, owns the remaining 90% interest. The Company retains the enactment to summation its ownership involvement to 50%. The associated venture’s full concern is expected to beryllium $210.5 million, which includes $3.3 cardinal of planned near-term gathering improvements and $0.5 cardinal of transaction costs. The Terraces is simply a 12-story best-in-class bureau gathering encompassing 173,00 quadrate feet located successful the bosom of Dallas’ Preston Center, a caller BBD for Highwoods. The Terraces, which delivered successful 2017, was 98% leased astatine December 31, 2025 with a weighted mean lease word of 7.0 years. Rents are astir 30% beneath market, which provides important semipermanent upside potential. The Company owns an 80% involvement successful the associated task that was formed to get The Terraces. Granite, the Company’s longtime spouse successful Dallas, owns the remaining 20% interest. The Company besides contributed to the associated task $12.9 cardinal (net of the Company’s 80% interest) of preferred equity. The associated venture’s full concern is expected to beryllium $109.3 million, which includes $2.5 cardinal of planned near-term gathering improvements and $0.5 cardinal of transaction costs. During 2026, the Company’s combined concern successful The Terraces and Bloc83 associated ventures is expected to make GAAP nett operating income of $9.0 cardinal and currency nett operating income of $7.5 million. In addition, the Company expects to make astir $0.8 cardinal of income during 2026 from its nett preferred equity concern successful The Terraces associated venture.

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