Highwoods Properties Acquires 3,057-Space Legacy Union Garage Charlotte for $111.5M

Highwoods Properties Inc. has acquired the Legacy Union Parking Garage in Uptown Charlotte for $111.5 million, adding a 3,057-space facility that supports 1.2 million square feet of Highwoods-owned office space. This strategic acquisition is expected to generate $8 million in net operating income in its first year and enhances connectivity for tenants through skybridge connections to nearby office towers. Approximately 70% of the garage's revenue is secured by long-term contracts averaging nine years, providing stable cash flow, while additional income is anticipated from transient parking and events at nearby Bank of America Stadium. The acquisition aligns with Highwoods' strategy to improve tenant experience and boost cash flow, though it requires careful liquidity management due to the substantial investment. Analysts maintain a 'Hold' rating on Highwoods' stock with modest upside potential, reflecting cautious optimism about the company's growth prospects. Highwoods' leadership highlights the acquisition's role in strengthening the company's presence in the Charlotte business district and supporting long-term growth.