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Feb. 4, 2013

Highwoods Sells Two Assets for $14.6M; Kite Realty Buys Publix-Anchored Center

By Georgiana Mihaila, Associate Editor

Raleigh-based Highwoods Properties, Inc. has sold two non-core assets in Orlando for $14.6 million in cash. The two office properties—Metrowest Commerce Center and Cambridge in Orlando—encompass 134,000 square feet.

The two properties are reportedly 100 percent leased to a single entity and are expected to generate $1.3 million of cash net operating income in 2013. Highwoods will continue to serve as property manager of these assets in exchange for customary fees.

President and Chief Executive Officer of Highwoods Properties, Ed Fritsch, said, “The sale of these non-core assets, the majority of which is a single-story asset, is in sync with our ongoing work to continuously improve our portfolio. These assets were not strategic to our Orlando holdings, which consist primarily of Class A CBD properties.”

A 69,000-square-foot Publix Supermarket-anchored shopping center also recently traded in Orlando for a purchase price—exclusive of closing costs—of $11.6 million. Kite Realty Group Trust, a full-service, vertically integrated real estate investment trust, acquired the property.

The center is currently 99 percent leased and is located within close proximity to Waterford Lakes Village, another Kite Realty Group-owned property. The retail center draws from the solid trade area surrounding the University of Central Florida as well as the Eastwood, Stoneybrook, and Waterford Lakes master plan communities.

“This property is a well-positioned grocery-anchored center with strong credit. We will continue to selectively acquire well-located assets throughout the Midwest, Southeast, and Texas markets,” said John A. Kite, the Company’s chairman and CEO.

Image courtesy of Highwoods.com