Highwoods Sells Nashville’s 513,000 sq ft Tower for $255M, Eyes $75M Gain
HIW•Highwoods sold the 513,000 sq ft Bridgestone Tower in Nashville’s CBD for $255 million, marking a fully leased asset divestiture. The REIT projects this sale will yield about $17 million in 2026 operating income and record a roughly $75 million non-FFO gain in Q2.
1. Sale Transaction and Asset Profile
Highwoods Properties completed the sale of Bridgestone Tower, a 513,000 square foot, fully leased office building in Nashville’s central business district, for $255 million. The transaction transfers a mature, high-occupancy asset off the balance sheet in line with the REIT’s portfolio optimization efforts.
2. Projected Financial Results
The company expects the divestiture to generate approximately $17 million of annual cash and GAAP net operating income in 2026. Highwoods also anticipates recording a non-FFO gain of about $75 million in the second quarter of 2026 as a result of this sale.
3. Strategic Implications
This sale aligns with Highwoods’ strategy to divest non-core assets and redeploy capital into higher-growth markets and development projects. Proceeds are likely to support debt reduction, share repurchases and investment in priority business districts.
