Ovation to Franklin
Purchase price of $ 57.8 million
Plans to re-imagine a mixed-use project
RALEIGH, NC, October 6, 2021 (GLOBE NEWSWIRE) – Highwoods Properties, Inc. (NYSE: HIW) announced today that it has acquired the remaining 77 acres of development land from Ovation in the Cool Springs neighborhood of Franklin, TN, one of Nashville’s Best Business Districts (BBDs), for a total purchase price of $ 57.8 million.
Highwoods now owns 100% of Ovation, which covers 145 acres in total and is the largest planned mixed-use project in Williamson County. Under the original master plan approved in 2015, Ovation had full rights to develop 1.4 million square feet of office space, over 400,000 square feet of retail, 950 residential units, 450 hotel rooms and 56 acres. of perpetually dedicated green spaces. Highwoods intends to reimagine the master plan as a high-density, mixed-use development and plans to move forward with a clear path to vertical development for all uses.
Ovation is currently home to the U.S. headquarters of Mars Petcare, one of the world’s leading pet care providers, occupying 224,000 square feet in two LEED-Gold certified connected office buildings completed by Highwoods in the second quarter of 2019. .
Ted Klinck, President and CEO, said âWe are delighted to now control all of Ovation and its 145 acres, ideally located as a gateway to Cool Springs, and we are delighted to partner with the City of Franklin to reinvent Ovation as one of the premier mixed-use addresses in the country. . Once we establish the updated mixed-use master plan and obtain the necessary approvals from the City of Franklin, we plan to work with high-quality retail, multi-family and hotel developers to realize the enormous potential. of this live-work-play property. , while retaining full control of office development sites.
âHaving 1.2 million square feet of additional office development potential in a dynamic mixed-use setting like Ovation is a perfect example of our workplace creation strategy of providing the location options and amenities. most talent-friendly workplaces to enable our clients to attract and retain the best talent.
Highwoods Properties, Inc., headquartered in Raleigh, is a publicly traded real estate investment trust (âREITâ) (NYSE: HIW) and a member of the S&P MidCap 400 Index. The Company is a fully office-based REIT. integrated company that owns, develops, acquires, leases and manages properties primarily in the best business districts (BBD) of Atlanta, Charlotte, Nashville, Orlando, Pittsburgh, Raleigh, Richmond and Tampa. For more information on Highwoods, please visit our website at www.highwoods.com.
Certain information contained in this press release may contain forward-looking statements. These statements include, in particular, statements about our plans, strategies and prospects such as the following: expected financial and operating results and related assumptions underlying our expected results, including, but not limited to, potential losses related to customer hardship, intended use of the building and expected economic activity due to COVID-19; the continued ability to borrow under the Company’s revolving credit facility; the total planned investment, the expected rental activity, the estimated replacement cost and the expected net operating income of the buildings acquired and buildings to be developed; and the expected future leverage effect of the Company. You can identify forward-looking statements by using forward-looking terminology such as “may”, “will”, “expect”, “anticipate”, “estimate”, “continue” or other similar words. Although we believe that our plans, intentions and expectations reflected or suggested by these forward-looking statements are reasonable, we cannot assure you that our plans, intentions or expectations will be realized.
When reviewing these forward-looking statements, you should keep in mind the important factors that could cause our actual results to differ materially from those contained in any forward-looking statement, including the following: the extent to which the pandemic of ongoing COVID-19 affects our financial condition, results of operations and cash flow depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the extent, severity and duration the pandemic and its impact on the US economy and potential changes in customer behavior that could adversely affect the use and demand of office space; the financial situation of our customers could deteriorate or deteriorate further, which could be further exacerbated by the COVID-19 pandemic; our assumptions regarding potential losses related to customer financial hardship due to the COVID-19 pandemic may prove to be incorrect; counterparties to our debt obligations, in particular our revolving credit facility, may attempt to evade their obligations under them which, if successful, would reduce our available liquidity; we may not be able to rent or re-let second generation space, defined as previously occupied space that becomes available for rent, quickly or on terms as favorable as old leases; we may not be able to lease newly constructed buildings as quickly or on such favorable terms as originally planned; we may not be able to complete development, acquisition, reinvestment, divestiture or joint venture projects as quickly or on terms as favorable as expected; development activity in our existing markets could result in excess supply relative to customer demand; our markets may experience a decline in economic and / or office employment growth; unanticipated increases in interest rates could increase our debt service charges; unforeseen increases in operating expenses could have a negative impact on our operating results; natural disasters and climate change could negatively impact our cash flow and results of operations; we may not be able to meet our liquidity needs or obtain capital on favorable terms to fund our working capital needs and growth initiatives or to repay or refinance outstanding debt when due; and the Company could lose key executives.
However, this list of risks and uncertainties is not intended to be exhaustive. You should also review the other caveats we make in the âRisk Factorsâ set out in our 2020 Annual Report on Form 10-K. In view of these uncertainties, you should not place undue reliance on forward-looking statements. We do not undertake to publish the results of any revision of these forward-looking statements to reflect future events or circumstances or to reflect the occurrence of unforeseen events.
|Executive Vice President of Finance and Treasurer|