Highwoods Properties Inc. (HIW) continues to boost its office portfolio with the construction of the fourth office building in GlenLake Park in Raleigh. Spanning 166,000 square feet with structured parking, the multi-tenant office building is already 25% pre-leased.
The construction of this building will commence in fourth-quarter 2013 and is targeted to be completed by first-quarter 2015. Highwoods’ estimated investment is $35.8 million, including existing company-owned land valuation.
This investment in the fourth office building in GlenLake Park can be considered as a strategic one given that the other three Class A office buildings’ (spanning 440,000 square feet) are fully leased.
Highwoods is actively repositioning its portfolio to focus on growing markets and is expanding in highly desirable infill locations. It is developing properties, making strategic dispositions and opportunistic buyouts and we expect these efforts to help strengthen its position in vibrant office markets of the U.S. and ride on the growth curves.
This new project will improve Highwoods’ development pipeline that currently stands at 1.1 million square feet of wholly-owned projects and 215 multi-family units in a 50%-50% owned joint venture.
This represented an investment of around $275 million and the properties are 86% pre-leased, thereby reflecting the solid demand for the company’s properties and ensuring steady revenue.
Highwoods currently carries a Zacks Rank #3 (Hold). Other promising stocks include CubeSmart (CUBE), Sotherly Hotels Inc. (SOHO) and Sovran Self Storage Inc. (SSS). All these stocks carry a Zacks Rank #1 (Strong Buy).