HIW · 10-Q · 2026Q1 · Full report

Acquisition / Partnership / Divestiture

HIGHWOODS PROPERTIES, INC. · 2026-04-28 · Importance 65 · Surprise 60

In Q1 2026 Highwoods acquired Bloc83, a two-building, 492,000 sq ft mixed-use asset in CBD Raleigh, via a joint venture with the North Carolina Investment Authority in which Highwoods initially owns 10.0%, part of an anticipated total joint venture investment of $210.5 million. The Bloc83 JV will be funded with $21.0 million of common equity from Highwoods and $189.5 million from NCIA, and Highwoods retained an option to increase ownership to 50.0%. The Company also expanded in Dallas by acquiring The Terraces (173,000 sq ft) through a JV with Granite in which Highwoods owns 80.0%; that JV has an anticipated total investment of $109.3 million including $64.3 million of preferred equity and $36.0 million of common equity contributed by Highwoods. During Q1 2026 Highwoods sold three Richmond buildings for aggregate proceeds of $42.3 million and recorded aggregate gains on disposition of $17.0 million.

Key facts

• Other income was $1.5 million higher in the first quarter of 2026 compared to 2025 primarily due to the sale of the Company’s 26.5% interest in Kessinger/Hunter and Company, LC in 2026.
• During Q1 2026, the Company acquired Bloc83, a two-building, 492,000 square foot mixed-use asset in CBD Raleigh, through a joint venture with the North Carolina Investment Authority in which the Company initially owns a 10.0% interest and retained an option to increase to 50.0%.
• During Q1 2026, the Company acquired The Terraces, a 173,000 square foot office building in the Preston Center BBD of Dallas, through a joint venture with Granite Properties in which the Company owns an 80.0% interest.