Highwoods and Denver's Miller Global Form Joint Ventures Valued at $412 Mil

RALEIGH, NC-In one of the largest office property deals of the year, locally-based Highwoods Properties Inc. and Miller Global Properties of Denver, CO are joint venturing development projects with an aggregate value of $412 million. Highwoods is contributing $7.5 million of developable land to one of the ventures. GE Capital Real Estate of Stamford, CT will be funding up to $276 million for the various projects.

The newly-created categories are the operating asset venture and the development joint venture. The operating asset venture involves the contribution of 21 in-service office properties comprising more than three million sf with a total value of $350 million. The venture involves class A office buildings in Atlanta, Orlando, Raleigh and Tampa.

The Atlanta properties are Deerfield I, 49,580 sf; Deerfield II, 67,207 sf; Deerfield III, 53,576 sf; and Peachtree Corners II, 109,293 sf. The Orlando assets are Capital Plaza I, 241,190 sf; Capital Plaza II, 302,709 sf; Landmark I, 223,508 sf; Landmark II, 221,414 sf; and Signature Plaza, 273,571 sf.

In Raleigh, the premises are 4101 Research Commons, 73,003 sf; 4201 Research Commons, 83,719 sf; 4301 Research Commons, 90,894 sf; 4501 Research Commons, 59,261 sf; Concourse, 132,175 sf; Lake Plaza East, 71,339 sf; Situs I, 59,255 sf; Situs II, 59,749 sf; and Situs III, 38,669 sf.

The three Tampa properties are Anchor Glass, 100,701 sf; Bayshore Place, 83,452 sf; and Tower Place, 182,214 sf.

The development joint venture will initially focus on four properties with a total budgeted cost of $62 million. Highwoods and Miller each have a 50% interest in this venture. Highwoods will oversee day-to-day development activities. The properties are Peachtree Corners III, 53,800 sf, Atlanta; Metro Center I, 87,832 sf; Metro Center II, 87,832 sf, both in Orlando; and Harborview, 205,350 sf, Tampa. Another 10 projects in various cities are being considered.

Miller Global has an 80% interest in the operating asset venture. Highwoods holds a 20% stake and will continue to manage and lease the properties. Miller Global will provide asset management oversight. In a prepared statement, Highwoods CEO Ron Gibson says the $300 million in liquidity generated from the joint ventures will allow the firm to complete the asset repositioning program it began in 1999 on time and on target.

Co-chairman of Miller Global, Eyal Ofer, says the alignment with Highwoods gives the Denver firm a strong position in four vibrant Southeast markets and increases the company’s geographic diversity.