PITTSBURGH – September 18, 2011–Highwoods Properties (NYSE: HIW), today announced that it has acquired PPG Place, a six-building Class A office complex encompassing approximately 1.54 million square feet in the heart of downtown Pittsburgh from an affiliate of the Hillman Company.
The acquisition of PPG Place marks Highwoods’ entry in the Pittsburgh market. The Company cited Pittsburgh’s stable, diverse and resilient economy and real estate market, as evidenced by strong demographic data and diversified core industries as key factors in its decision to enter this market.
“We are thrilled to enter the dynamic Pittsburgh market through the acquisition of the iconic PPG Place office complex,” said Ed Fritsch, President and CEO Highwoods Properties. “Pittsburgh has an enviable economy, and is home to eight Fortune 500 companies, two of which are headquartered in PPG Place. Unemployment is equal to that of Washington, well below the national average, and the city boasts a highly skilled, highly dedicated work force.”
PPG Place is a solid bull’s eye with regard to our long-stated acquisition criteria: well above average market demographics and a prime infill location in a top tier submarket with significant barriers to entry. PPG Place has occupancy and rent growth upside potential and immediately gives us a critical mass in the market and provides a platform from which to grow our Pittsburgh operations.”
A number of near-term building improvements are planned that will enhance PPG Place for its customers and visitors. The Company is also excited to continue the traditions beloved by Pittsburghers, including the seasonal ice-skating rink and interactive water feature on PPG Plaza.
“These traditions add to the vibrancy of PPG Place and downtown Pittsburgh,” added Fritsch. “From our perspective, we’re not moving into a market – we’re joining a community. We are committed to being a good neighbor, business partner and community supporter,” added Fritsch.
Highwoods will open an office in PPG Place and handle all onsite management functions and CB Richard Ellis will run point on leasing.
