May 1, 2017
Raleigh, NC-based Highwoods Properties secured $100-million in debt financing for Pinnacle at Symphony Place in Nashville, TN. The 29-story office tower was built in 2010, and acquired in 2013 for $153 million.
Germany’s Allianz Real Estate provided the loan to the publicly-traded REIT. The loan has a 12-year term, and carries a 4% coupon.
Highwoods noted in its Q1 earnings call that proceeds will be used to pay off a $108-million maturing secured loan on the PPG buildings in Pittsburgh with an effective interest rate of 4.2%. This refinancing extends out the company’s maturity ladder at a competitive fixed rate, while improving Highwoods’ unencumbered NOI to 95%.
Highwoods has increased occupancy at the 520,000-square-foot Nashville asset to 99%, up from 84.9% when it was acquired.
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