HIW · 10-Q · 2026Q1 · Full report

Joint Venture Financing

HIGHWOODS PROPERTIES, INC. · 2026-04-28 · Importance 58 · Surprise 42

Highwoods contributed $19.3 million of preferred equity to the Granite Park Six joint venture (50% owned by Highwoods) in Q1 2026 to pay off the $16.2 million outstanding balance of a construction loan. On April 23, 2026 the Granite Park Six JV obtained a secured loan for up to $100.0 million at SOFR plus 225 basis points, with an effective fixed SOFR via an interest rate swap at 3.68%. As of April 23, 2026 the JV had $85.3 million drawn on the secured loan and used proceeds to redeem the preferred equity contributed by Highwoods and distribute remaining proceeds equally to Granite and Highwoods. The preferred equity contributed by Highwoods was originally entitled to monthly distributions at an 8.0% rate prior to the loan refinancing.

Key facts

• On April 23, 2026 the Granite Park Six joint venture obtained a secured loan for up to $100.0 million with an interest rate of SOFR plus 225 basis points and a maturity date of April 2028 (extensible one year at JV option), and obtained an interest rate swap that effectively fixes the underlying SOFR rate at 3.68%.
• The Terraces joint venture has an anticipated total investment of $109.3 million funded with $64.3 million of preferred equity contributed by the Company, $36.0 million of common equity contributed by the Company and $9.0 million of common equity contributed by Granite.
• As of April 23, 2026, $85.3 million was drawn on the Granite Park Six joint venture secured loan.
• The Bloc83 joint venture has an anticipated total investment of $210.5 million, funded with $21.0 million of common equity contributed by the Company and $189.5 million of common equity contributed by NCIA.
• During Q1 2026, the Company contributed $19.3 million of preferred equity to the Granite Park Six joint venture, in which the Company owns a 50.0% interest.
• The Granite Park Six joint venture used the $19.3 million contributed preferred equity to pay off at maturity a $16.2 million outstanding balance of an up to $115.0 million construction loan.
• The preferred equity contributed by the Company to The Terraces joint venture is entitled to receive monthly distributions from available cash at a rate of 5.75%.
• The preferred equity contributed by the Company to the Granite Park Six joint venture was entitled to receive monthly distributions at a rate of 8.0%.

Impact estimates