RALEIGH — In a move announced today, Raleigh-based Highwoods Properties (NYSE: HIW) will acquire a portfolio of seven office properties and one real estate loan investment from Atlanta-based Preferred Apartment Communities, Inc. (NYSE: APTS) for a purchase price of $717.5 million, with an expected closing in the third quarter of 2021.
The portfolio includes 150 Fayetteville, also known as the Wells Fargo Capitol Center, a 560,000 square foot office tower in Raleigh, as well as the CAPTRUST Tower, a 300,000 square foot office in North Raleigh, as well as Capitol Towers, a 479,000 square foot, two-building office tower complex in the SouthPark neighborhood of Charlotte, and Morrocroft Centre, a 291,000 square foot, three-building office tower in Charlotte, and three properties in Atlanta, along with the real estate loan investment.
To acquire the portfolio, Highwoods paid $50 million in earnest money deposits, and by the terms of the agreement, two of the Atlanta properties will be marketed for sale to a third-party.
The deal was announced in a press release issued by Preferred Apartment Communities, Inc., on Monday.
Highwoods Properties stock traded at about $52 per share in mid-February 2020, then fell to around $28/share in the early portion of the onset of the global coronavirus pandemic and its spread into the United States in March 2020, and is currently trading between $40 and $43 per share in the first part of 2021.