- --------------------------------------------------------------------------------
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FORM 10-K/A
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
[X] Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the fiscal year ended December 31, 1997
OR
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from to
Commission file number 0-21731
HIGHWOODS/FORSYTH LIMITED PARTNERSHIP
(Exact name of registrant as specified in its charter)
<TABLE>
<CAPTION>
North Carolina 56-1869557
<S> <C>
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
</TABLE>
3100 Smoketree Court, Suite 600
Raleigh, N.C. 27604
(Address of principal executive offices) (Zip Code)
919-872-4924
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
<TABLE>
<CAPTION>
Name of Each Exchange on
Title of Each Class Which Registered
- --------------------------------------------- -------------------------
<S> <C>
6 3/4% Notes due December 1, 2003 New York Stock Exchange
7% Notes due December 1, 2006 New York Stock Exchange
</TABLE>
Securities registered pursuant to Section 12(g) of the Act:
NONE
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained to the
best of Registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment of
this Form 10-K. [X]
The aggregate value of the Common Units held by non-affiliates of the
registrant (based on the closing price on the New York Stock Exchange of a
share of Common Stock of Highwoods Properties, Inc., the general partner of the
registrant) on March 20, 1998 was $277,520,334.
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<PAGE>
PART I
ITEM 2. PROPERTIES
General
The following table sets forth certain information about the Properties at
December 31, 1997:
<TABLE>
<CAPTION>
Percent of
Rentable Total Percent of
Office Industrial Total Square Rentable December 1997
Properties Properties (1) Properties Feet Square Feet Rental Revenue
------------ ---------------- ------------ ------------ ------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
Research Triangle, NC ......... 69 4 73 4,686,120 15.2% 17.9%
Atlanta, GA ................... 39 31 70 4,824,831 15.5 12.2
Tampa, FL ..................... 42 -- 42 2,904,587 9.5 11.4
Piedmont Triad, NC ............ 34 79 113 4,738,992 15.3 10.0
South Florida ................. 27 -- 27 2,384,044 7.8 10.0
Nashville, TN ................. 15 3 18 1,821,485 5.9 7.4
Orlando, FL ................... 30 -- 30 1,990,148 6.5 6.5
Jacksonville, FL .............. 16 -- 16 1,465,139 4.8 4.7
Charlotte, NC ................. 15 16 31 1,428,590 4.7 4.1
Richmond, VA .................. 20 2 22 1,278,726 4.2 3.9
Greenville, SC ................ 8 2 10 1,001,641 3.3 3.0
Memphis, TN ................... 9 -- 9 606,549 2.0 2.7
Baltimore, MD ................. 5 -- 5 364,434 1.2 2.1
Columbia, SC .................. 7 -- 7 423,738 1.4 1.5
Tallahassee, FL ............... 1 -- 1 244,676 0.8 0.9
Norfolk, VA ................... 2 1 3 265,857 0.9 0.8
Birmingham, AL ................ 1 -- 1 115,289 0.4 0.5
Asheville, NC ................. 1 1 2 124,177 0.4 0.3
Ft. Myers, FL ................. 1 -- 1 51,831 0.2 0.1
-- -- --- --------- ----- -----
Total ..................... 342 139 481 30,720,854 100.0% 100.0%
=== === === ========== ===== =====
</TABLE>
<TABLE>
<CAPTION>
Office Properties Industrial Properties (1) Total or Weighted Average
------------------- --------------------------- --------------------------
<S> <C> <C> <C>
Total rentable square feet ........... 23,841,565 6,879,289 30,720,854
Percent leased ....................... 94%(2) 93%(3) 94%
Weighted average age (years) ......... 12.2(4) 11.4 12.0
</TABLE>
- ----------
(1) Includes 73 service center properties.
(2) Includes 47 single-tenant properties comprising 3.4 million rentable square
feet and 378,000 rentable square feet leased but not occupied.
(3) Includes 24 single-tenant properties comprising 1.6 million rentable square
feet and 27,000 rentable square feet leased but not occupied.
(4) Excludes the Comeau Building, which is a historical building constructed in
1926 and renovated in 1996.
2
<PAGE>
The following table sets forth certain information about the portfolio of
in-service and development properties as of December 31, 1997 and 1996:
<TABLE>
<CAPTION>
December 31, 1997 December 31, 1996
------------------------------------------- ------------------------------------------
Number Percent Number Percent
of Rentable Leased/ of Rentable Leased/
Properties Square Feet Pre-leased Properties Square Feet Pre-leased
------------ ------------- ------------ ------------ ------------- -----------
<S> <C> <C> <C> <C> <C> <C>
In-Service
Office ............. 342 23,842,000 94% 181 12,350,600 93%
Industrial ......... 139 6,879,000 93 111 5,104,600 90
--- ---------- -- --- ---------- --
Total ............. 481 30,721,000 94% 292 17,455,200 92%
=== ========== == === ========== ==
Under Development
Office ............. 25 2,688,000 43% 12 825,000 52%
Industrial ......... 7 585,000 26 2 190,000 24
--- ---------- -- --- ---------- --
Total ............. 32 3,273,000 40% 14 1,015,000 46%
=== ========== == === ========== ==
Total
Office ............. 367 26,530,000 193 13,175,600
Industrial ......... 146 7,464,000 113 5,294,600
--- ---------- --- ----------
Total ............. 513 33,994,000 306 18,470,200
=== ========== === ==========
</TABLE>
Tenants
As of December 31, 1997, the Properties were leased to approximately 3,100
tenants, which engage in a wide variety of businesses. The following table sets
forth information concerning the 20 largest tenants of the Properties as of
December 31, 1997:
<TABLE>
<CAPTION>
Percent of Total
Number Annualized Annualized
Tenant of Leases Rental Revenue (1) Rental Revenue
- -------------------------------------------------------- ----------- -------------------- -----------------
<S> <C> <C> <C>
1. IBM ................................................ 13 $13,546,185 3.7%
2. Federal Government ................................. 45 12,059,353 3.3
3. AT&T ............................................... 16 6,985,351 1.9
4. Bell South ......................................... 45 6,340,084 1.7
5. State of Florida ................................... 22 5,215,070 1.4
6. GTE ................................................ 6 2,995,422 0.8
7. NationsBank ........................................ 21 2,953,191 0.8
8. First Citizens Bank & Trust ........................ 8 2,887,811 0.8
9. Blue Cross & Blue Shield of South Carolina ......... 10 2,554,517 0.7
10. MCI ................................................ 10 2,458,637 0.7
11. Prudential ......................................... 13 2,412,640 0.7
12. Jacobs-Sirrene Engineers, Inc. ..................... 1 2,235,550 0.6
13. Price Waterhouse ................................... 3 2,047,953 0.6
14. US Airways ......................................... 4 2,033,940 0.6
15. Alex Brown & Sons .................................. 1 1,943,070 0.5
16. H.L.P. Health Plan of Florida ...................... 2 1,913,005 0.5
17. The Martin Agency, Inc. ............................ 1 1,863,504 0.5
18. Northern Telecom Inc. .............................. 2 1,849,118 0.5
19. BB&T ............................................... 4 1,845,501 0.5
20. ClinTrials ......................................... 4 1,812,206 0.5
-- ----------- ----
Total ............................................. 231 $77,952,108 21.3%
=== =========== ====
</TABLE>
- ----------
(1) Annualized Rental Revenue is December 1997 rental revenue (base rent plus
operating expense pass throughs) multiplied by 12.
3
<PAGE>
The following tables set forth certain information about the Operating
Partnership's leasing activities for the years ended December 31, 1997 and
1996.
<TABLE>
<CAPTION>
1997 1996
------------------------------- -------------------------------
Office Industrial Office Industrial
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Net Effective Rents Related to Re-Leased
Space:
Number of lease transactions (signed
leases) ................................... 520 241 306 240
Rentable square footage leased .............. 2,531,393 1,958,539 1,158,563 2,302,151
Average per rentable square foot over the
lease term:
Base rent ................................. $ 16.04 $ 5.37 $ 15.00 $ 4.68
Tenant improvements ....................... (1.06) (0.22) (0.93) (0.15)
Leasing commissions ....................... (0.39) (0.13) (0.31) (0.10)
Rent concessions .......................... (0.01) (0.01) -- --
----------- ---------- ---------- ----------
Effective rent ............................ $ 14.58 $ 5.01 $ 13.76 $ 4.43
Expense stop (1) .......................... (3.53) (0.23) (3.36) (0.39)
----------- ---------- ---------- ----------
Equivalent effective net rent ............. $ 11.05 $ 4.78 $ 10.40 $ 4.04
=========== ========== ========== ==========
Average term in years ....................... 4 3 4 2
=========== ========== ========== ==========
Rental Rate Trends:
Average final rate with expense pass
throughs .................................. $ 13.78 $ 5.08 $ 13.64 $ 4.41
Average first year cash rental rate ......... $ 14.76 $ 5.37 $ 14.46 $ 4.68
----------- ---------- ---------- ----------
Percentage increase ......................... 7.11% 5.71% 6.01% 6.12%
=========== ========== ========== ==========
Capital Expenditures Related to
Re-leased Space:
Tenant Improvements:
Total dollars committed under signed
leases ................................... $11,443,099 $1,421,203 $4,496,523 $ 685,880
Rentable square feet ...................... 2,531,393 1,958,539 1,158,563 2,302,151
----------- ---------- ---------- ----------
Per rentable square foot .................. $ 4.52 $ 0.73 $ 3.88 $ 0.30
=========== ========== ========== ==========
Leasing Commissions:
Total dollars committed under signed
leases ................................... $ 4,247,280 $ 890,280 $1,495,498 $ 470,090
Rentable square feet ...................... 2,531,393 1,958,539 1,158,563 2,302,151
----------- ---------- ---------- ----------
Per rentable square foot .................. $ 1.68 $ 0.45 $ 1.29 $ 0.20
=========== ========== ========== ==========
Total:
Total dollars committed under signed
leases ................................... $15,690,379 $2,311,483 $5,992,021 $1,155,970
Rentable square feet ...................... 2,531,393 1,958,539 1,158,563 2,302,151
----------- ---------- ---------- ----------
Per rentable square foot .................. $ 6.20 $ 1.18 $ 5.17 $ 0.50
=========== ========== ========== ==========
</TABLE>
- ----------
(1) "Expense stop" represents operating expenses (generally including taxes,
utilities, routine building expenses and common area maintenance) for
which the Operating Partnership will not be reimbursed by the tenants.
4
<PAGE>
The following tables set forth scheduled lease expirations for executed
leases as of December 31, 1997, assuming no tenant exercises renewal options.
Office Properties:
<TABLE>
<CAPTION>
Average Percentage of
Annual Leased Rents
Total Percentage of Annual Rents Rental Rate Represented
Year of Rentable Leased Square Footage Under Per Square by
Lease Number of Square Feet Represented by Expiring Foot for Expiring
Expiration Leases Expiring Expiring Leases Leases (1) Expirations (1) Leases
- ------------ ----------- ------------- ----------------------- -------------- ----------------- --------------
<S> <C> <C> <C> <C> <C> <C>
1998 886 3,785,469 17.2% $ 57,338,996 $ 15.15 17.2%
1999 627 3,144,551 14.3 47,330,017 15.05 14.3
2000 684 3,532,083 16.0 54,111,857 15.32 16.3
2001 413 3,077,007 13.9 47,164,815 15.33 14.2
2002 410 3,131,735 14.2 47,142,775 15.05 14.2
2003 86 1,227,155 5.6 18,193,113 14.83 5.5
2004 55 980,824 4.4 16,840,214 17.17 5.1
2005 39 817,786 3.7 10,501,525 12.84 3.2
2006 27 847,453 3.8 11,936,405 14.09 3.6
2007 18 535,012 2.4 7,273,331 13.59 2.2
Thereafter 25 983,034 4.5 14,103,828 14.35 4.2
--- --------- ----- ------------ -------- -----
Total or
average 3,270 22,062,109 100.0% $331,936,876 $ 15.05 100.0%
===== ========== ===== ============ ======== =====
</TABLE>
Industrial Properties:
<TABLE>
<CAPTION>
Average Percentage of
Annual Leased Rents
Total Percentage of Annual Rents Rental Rate Represented
Year of Rentable Leased Square Footage Under Per Square by
Lease Number of Square Feet Represented by Expiring Foot for Expiring
Expiration Leases Expiring Expiring Leases Leases (1) Expirations (1) Leases
- ------------- ----------- ------------- ----------------------- -------------- ----------------- --------------
<S> <C> <C> <C> <C> <C> <C>
1998 221 1,686,906 26.2% $ 9,247,354 $ 5.48 26.7%
1999 139 1,215,439 19.0 6,500,284 5.35 18.8
2000 123 1,223,412 19.1 7,304,628 5.97 21.1
2001 58 597,379 9.3 3,523,569 5.90 10.2
2002 54 1,159,283 18.1 5,056,924 4.36 14.6
2003 9 99,905 1.6 760,152 7.61 2.2
2004 5 104,369 1.6 602,516 5.77 1.7
2005 4 33,832 0.5 289,380 8.55 0.8
2006 2 196,600 3.1 882,636 4.49 2.5
2007 -- -- -- -- -- --
Thereafter 1 95,545 1.5 464,826 4.86 1.4
--- --------- ----- ----------- ------- -----
Total or
average 616 6,412,670 100.0% $34,632,269 $ 5.40 100.0%
=== ========= ===== =========== ======= =====
</TABLE>
- ----------
(1) Includes operating expense pass throughs and excludes the effect of future
contractual rent increases.
5
<PAGE>
Table of Properties
The following table and the notes thereto set forth information regarding
the Properties at December 31, 1997:
<TABLE>
<CAPTION>
Percent
Occupied at Tenants Leasing 25% or More
Building Year Rentable December 31, of Rentable Square Feet at
Property Type (1) Built Square Feet 1997(13) December 31, 1997
- ------------------------- ---------- ------- ------------- -------------- -------------------------------------------
<S> <C> <C> <C> <C> <C>
Research Triangle, NC
- -------------------------
Highwoods Office Center
Amica O 1983 20,708 100% Amica Mutual Insurance Co.
Interface Technologies
Arrowood O 1979 58,743 100 First Citizens Bank & Trust
Aspen O 1980 36,796 87 Coopers & Lybrand
Birchwood O 1983 12,748 100 Southlight, Inc., Donohoe Construction Co.
Cedar East O 1981 40,552 100 Amerimark Building Products
Cedar West O 1981 39,609 100 N/A
Cottonwood O 1983 40,150 100 First Citizens Bank & Trust
Cypress O 1980 39,003 90 GSA-Army Recruiters
Dogwood O 1983 40,613 100 First Citizens Bank & Trust
Global Software O 1996 92,985 100 Global Software Inc.
Hawthorn O 1987 63,797 100 Carolina Telephone & Telegraph
Highwoods Tower O 1991 185,446 98 Maupin, Taylor & Ellis
Holly O 1984 20,186 100 Capital Associated Industries
Ironwood O 1978 35,695 97 First Citizens Bank & Trust
Kaiser O 1988 56,975 100 Kaiser Foundation Health
Laurel O 1982 39,382 100 Ms. Terry Woods,
First Citizens Bank & Trust
Leatherwood O 1979 36,581 92 GAB Robins North America, Inc.
Smoketree Tower O 1984 150,341 98 N/A
Rexwoods Office Center
2500 Blue Ridge O 1982 61,594 97 Rex Hospital, Inc.
Blue Ridge II O 1988 20,673 100 McGladrey & Pullen
Rexwoods Center O 1990 41,686 100 N/A
Rexwoods II O 1993 20,845 100 Raleigh Neurology Clinic,
Miller Building Corporation
Rexwoods III O 1992 42,488 100 ARCADIS Geraghty & Miller, Inc.
Rexwoods IV O 1995 42,331 100 N/A
Triangle Business Center
Building 2A O 1984 102,400 100 Harris Semiconductor Corporation,
Building 2B S 1984 32,000 100 Qualex Inc.
Building 3 O 1988 135,382 100 N/A
Building 7 O 1986 124,432 91 Broadband Technologies, Inc.
Progress Center
Cape Fear O 1979 41,527 100 Intercardia, Inc.
Catawba O 1980 40,578 100 GSA -- EPA
Pamlico O 1980 104,773 100 Northern Telecom, Inc.
North Park
4800 North Park O 1985 168,016 100 IBM-PC Division
4900 North Park O 1984 32,339 100 N/A
5000 North Park O 1980 74,653 93 N/A
Creekstone Park
Creekstone Crossing O 1990 59,299 100 N/A
Riverbirch O 1987 60,192 100 Quintiles, Inc.
Sycamore O 1997 72,124 95 Northern Telecom Inc.
Willow Oak O 1995 89,392 100 AT&T
Research Commons
EPA Administration O 1966 46,718 100 GSA-EPA
EPA Annex O 1966 145,875 100 GSA-EPA
4501 Building O 1985 56,566 100 Lockheed Martin
4401 Building O 1987 117,436 100 Ericsson, GSA-NIH
4301 Building O 1989 90,894 100 Glaxo Wellcome, Inc.
4201 Building O 1991 83,481 100 GSA-EPA
Roxboro Road Portfolio
Fairfield I O 1987 52,050 92 Reliance Insurance Company
Fairfield II O 1989 59,954 100 Qualex, Inc.
Qualex O 1985 67,000 100 Qualex, Inc.
4101 Roxboro O 1984 56,000 100 Duke -- Cardiology
4020 Roxboro O 1989 40,000 100 Duke -- Pediatrics
Duke -- Cardiology
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
Percent
Occupied at Tenants Leasing 25% or More
Building Year Rentable December 31, of Rentable Square Feet at
Property Type (1) Built Square Feet 1997(13) December 31, 1997
- ------------------------------- ---------- ------- ------------- -------------- -----------------------------------------
<S> <C> <C> <C> <C> <C>
Six Forks Center
Six Forks Center I O 1982 33,867 98% Centura Bank, NY Life Ins. Co.
Six Forks Center II O 1983 55,678 93 N/A
Six Forks Center III O 1987 60,814 100 EDS
ONCC
Phase I S 1981 101,129 75 N/A
"W" Building O 1983 91,335 79 Closure Medical Corporation
3645 Trust Drive O 1984 50,652 74 Customer Access Resources, Inc.
5220 Green's Dairy Road O 1984 29,720 100 N/A
5200 Green's Dairy Road O 1984 18,317 32 N/A
5301 Departure Drive S 1984 84,899 100 ABB Power T&D Co., Inc.,
Cardiovascular Diagnostics, Inc.
Other Research Triangle
Properties
4000 Aerial Center O 1992 25,330 0 N/A
Colony Corporate Center O 1985 52,183 79 Rust Environmental &
Infrastructure, Fujitsu
Concourse O 1986 131,834 100 ClinTrials
Cotton Building O 1972 40,035 100 Cotton Inc., Associated
Insurances Inc.
Expressway One Warehouse I 1990 59,600 54 Number One Supply Corporation
3600 Glenwood Avenue (2) O 1986 78,008 100 Poyner & Spruill
Healthsource O 1996 180,000 100 Healthsource N.C.
Holiday Inn O 1984 30,000 100 Holiday Hospitality Corporation
Lake Plaza East O 1984 71,339 93 N/A
MSA O 1996 55,219 100 Management Systems Associates
Phoenix O 1990 26,449 91 Computer Intelligence, Inc.
North Park Building One O 1997 42,255 38 Medpartners Acquisition
Situs I O 1996 59,255 95 BellSouth
South Square I O 1988 56,401 100 Blue Cross and Blue Shield of SC
South Square II O 1989 58,793 100 Blue Cross and Blue Shield of NC,
--------- ---
Duke University
Total or Weighted Average 4,686,120 95%
========= ===
Atlanta, GA
- -------------------------------
Oakbrook
Oakbrook I S 1981 106,662 100 N/A
Oakbrook II O 1983 141,938 100 Assetcare, Inc.
Oakbrook III S 1984 164,297 100 N/A
Oakbrook IV O 1985 89,102 100 N/A
Oakbrook V O 1985 204,338 100 N/A
6348 Northeast Expressway I 1978 49,023 100 Quick Ship Holding, Inc.
6438 Northeast Expressway I 1981 43,024 100 Leather Creations, Inc., Roos, Inc.
Chattahoochee Avenue I 1970 62,095 82 N/A
Corporate Lakes Dist Center I 1988 235,595 99 Motorola Energy Products
Cosmopolitan North O 1980 120,967 90 Wells Fargo Armored Services Corporation
Gwinnett Distribution I 1991 316,668 98 N/A
Center
Lavista Business Park I 1973 216,200 94 N/A
Norcross I,II I 1970 64,010 100 Sun Mi Chun
Oakbrook Summitt I 1981 234,232 100 N/A
Southside Distribution I 1988 191,200 73 Coca-Cola
Center
Steel Drive I 1975 57,188 93 Ballistic Studios
Century Center
1700 Century Circle O 1972 69,368 95 N/A
1800 Century Boulevard O 1975 279,491 100 Bell South
1875 Century Boulevard (3) O 1976 96,069 100 GSA
1900 Century Boulevard (3) O 1971 80,026 96 N/A
2200 Century Parkway (3) O 1971 143,088 100 N/A
2600 Century Parkway (3) O 1973 96,287 100 MBNA Marketing Systems, Inc., GSA
2635 Century Parkway (3) O 1980 210,066 99 GSA
2800 Century Parkway (3) O 1983 220,873 100 AT&T
Other Atlanta Properties
1035 Fred Drive I 1973 100,187 100 The Tenstar Corporation
1077 Fred Drive I 1973 105,600 100 Advanced Distribution Systems,
International Paper
5125 Fulton Industrial Blvd. I 1973 149,386 100 Martin Brower Co.
Fulton Corporate Center I 1973 101,000 87 N/A
</TABLE>
7
<PAGE>
<TABLE>
<CAPTION>
Percent
Occupied at Tenants Leasing 25% or More
Building Year Rentable December 31, of Rentable Square Feet at
Property Type (1) Built Square Feet 1997(13) December 31, 1997
- ------------------------------- ---------- ------- ------------- -------------- -------------------------------------
<S> <C> <C> <C> <C> <C>
400 North Business Park O 1985 85,756 100% N/A
Kennestone Corporate O 1985 81,993 100 N/A
Center
Oxford Lakes Business O 1985 102,446 100 Vanstar Corporation
Center
Chastain Place 1 I 1997 108,000 50 Nailco Southeast, Inc.
Bluegrass Place 1 I 1995 69,000 100 Ebscaft, Inc.
Bluegrass Place 2 I 1996 72,000 100 Hansgrohe, Inc.
1765 The Exchange O 1983 90,215 90 GA Waste Systems Inc.
Two Point Royal O 1997 123,032 89 Hartford Fire Insurance Co., Textron
Financial Corporation
50 Glenlake O 1997 144,409 93 Hartford Fire Insurance Co
--------- ---
Total or Weighted Average 4,824,831 96%
========= ===
Tampa, FL
- -------------------------------
Sabal Park
Atrium O 1989 131,952 100 GTE Data Services, Inc.,
Intermedia Communications
Sabal Business Center VI O 1988 99,136 100 Pharmacy Management
Services, Inc.
Progressive Insurance O 1988 83,648 100 Progressive American
Insurance Co.
Sabal Business Center VII O 1990 71,248 100 Beverly Enterprises, Inc.
Sabal Business Center V O 1988 60,578 100 Lebhar-Friedman Inc.
Registry II O 1987 58,781 97 N/A
Registry I O 1985 58,319 95 N/A
Sabal Business Center IV (4) O 1984 49,368 100 Phillips Educational Group of
Central Florida, Inc.,
TGC Home Health Care, Inc.
Sabal Tech Center O 1989 48,220 100 Merck-Medco Managed Care
Sabal Park Plaza O 1987 46,758 100 State of Florida Department
of Revenue, ERM South, Inc.
Sabal Lake Building O 1986 44,533 100 Warner Publisher Services,
Inc.
Sabal Business Center I O 1982 39,866 85 N/A
Sabal Business Center II O 1984 32,736 64 Owen Ayres and Associates,
Inc.
Registry Square O 1988 26,568 91 Proctor & Redfern, Inc.
Expo Building O 1981 25,600 100 Exposystems, Inc., Expodisplays
Sabal Business Center III O 1984 21,300 100 Progressive Insurance
Benjamin Center
Benjamin Center #7 O 1991 30,962 100 Basetec Office Systems, Inc.,
Beers Construction
Benjamin Center #9 O 1989 38,405 79 First Image Management Co.
Tampa Bay Park
Horizon (5) O 1980 92,073 91 IBM
Lakeside (5) O 1978 91,545 100 American Portable Telecom
Lakepointe I O 1986 229,524 98 IBM, Price Waterhouse
Parkside (5) O 1979 102,046 100 IBM
Pavillion (5) O 1982 144,166 100 IBM
Spectrum O 1984 146,994 100 IBM
Other Tampa Properties
Tower Place O 1988 181,179 96 N/A
Day Care Center O 1986 8,000 100 Brookwood Academy Child Care
5400 Gray Street O 1973 5,408 100 The Wackenhut Corporation
Crossroads Office Center O 1981 74,729 63 N/A
Cypress West O 1985 64,977 82 Paradigm Communications, Inc.
Feathersound II O 1986 79,972 98 N/A
Fireman's Fund Building O 1982 49,578 98 Fireman's Fund Insurance Co.,
Pitney Bowes, Inc.
Lakeside Technology Center O 1984 146,663 94 NationsBank
Grand Plaza O 1985 239,353 90 N/A
Mariner Square O 1973 72,319 99 GSA
Telecom Technology Center O 1991 133,820 100 GTE
Zurn Building O 1983 74,263 100 N/A
--------- --- -------------------------------------
Total or Weighted Average 2,904,587 96%
========= ===
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
Percent
Occupied at Tenants Leasing 25% or More
Building Year Rentable December 31, of Rentable Square Feet at
Property Type (1) Built Square Feet 1997(13) December 31, 1997
- ------------------------- ---------- ------- ------------- -------------- ----------------------------------
<S> <C> <C> <C> <C> <C>
Piedmont Triad, NC
- -------------------------
Airpark East
Highland Industries S 1990 12,500 100% Highland Industries, Inc.
Service Center 1 S 1985 18,575 53 N/A
Service Center 2 S 1985 19,125 0 N/A
Service Center 3 S 1985 16,498 100 ECPI of Tidewater, VA
Service Center 4 S 1985 16,500 0 N/A
Copier Consultants S 1990 20,000 100 Copier Consultants
Service Court S 1990 12,600 81 N/A
Building 01 O 1990 24,423 79 Health & Hygiene
Building 02 O 1986 23,827 100 GSA-United States Postal Service
Building 03 O 1986 23,182 96 Time Warner, Lockheed Martin
Building 06 O 1997 12,500 62 Simplex Time Recorder Co.
Building A O 1986 56,272 100 N/A
Building B O 1988 54,088 100 GSA-United States Postal Service
Building C O 1990 134,893 91 Daicore Life and Health Ins.
Building D O 1997 54,007 90 Volvo
Sears Cenfact O 1989 49,504 100 Sears
Hewlett Packard O 1996 15,000 100 Hewlett Packard Co.
Inacom O 1996 12,620 100 Inacom Business Centers Inc.
Warehouse 1 I 1985 64,000 100 Guilford Business Forms, Inc.,
Safelite Glass Corporation
Warehouse 2 I 1985 64,000 75 Volvo GM Heavy Truck Corporation,
State Street Bank Realty
Warehouse 3 I 1986 57,600 93 US Air, Inc., Garlock, Inc.
Warehouse 4 I 1988 54,000 100 First Data Resources, Inc.,
Microdyne Systems, Inc.
Airpark North
DC-1 I 1986 112,000 100 VSA, Inc.
DC-2 I 1987 111,905 100 Sears
Electric South
DC-3 I 1988 75,000 100 Continuous Forms & Checks, Inc.,
Liberty of NC
DC-4 I 1988 60,000 0 N/A
Airpark West
Airpark I O 1984 60,000 100 Volvo GM Heavy Truck Corp.
Airpark II O 1985 45,680 67 Volvo GM Heavy Truck Corp.
Airpark IV O 1985 22,612 100 Max Radio of Greensboro
Airpark V O 1985 21,923 46 N/A
Airpark VI O 1985 22,097 94 Brookstone College, Anacomp
West Point Business Park
BMF Warehouse I 1986 240,000 100 Sara Lee Knit Products, Inc.
WP-11 I 1988 89,600 100 N.C. Record Control Centers,
Walt Klein & Associates
WP-12 I 1988 89,600 100 Norel Plastics, Sara Lee
WP-13 I 1988 89,600 100 Sara Lee Knit Products, Inc.
WP-3 & 4 S 1988 18,059 100 Pediatric Services of America,
Rayco Safety, Inc.
WP-5 S 1995 26,282 100 Cardinal Health, Inc.
Fairchild Building I 1990 89,000 100 Fairchild Industrial Products
LUWA Bahnson Building O 1990 27,000 100 Luwa Bahnson, Inc.
University Commercial
Center
W-1 I 1983 44,400 100 Lantal Corp.
W-2 I 1983 46,500 100 Paper Supply Company
SR-1 S 1983 23,112 100 N/A
SR-2 01/02 S 1983 17,282 100 Decision Point Marketing
SR-3 S 1984 23,925 80 Decision Point Marketing
Building 03 O 1985 37,077 61 N/A
Building 04 O 1986 34,470 94 Telespectrum Worldwide, Inc.
Knollwood Office Center
370 Knollwood O 1994 90,315 100 Krispy Kreme, Prudential
Carolinas Realty
380 Knollwood O 1990 164,179 100 N/A
Stoneleigh Business Park
7327 W. Friendly Ave. S 1987 11,180 90 Sprint, Salem Imaging
7339 W. Friendly Ave. S 1989 11,784 100 Medical Endoscopy Service,
R.F. Micro Devices
7341 W. Friendly Ave. S 1988 21,048 91 R.F. Micro Devices
</TABLE>
9
<PAGE>
<TABLE>
<CAPTION>
Percent
Occupied at Tenants Leasing 25% or More
Building Year Rentable December 31, of Rentable Square Feet at
Property Type (1) Built Square Feet 1997(13) December 31, 1997
- ------------------------------ ---------- ------- ------------- -------------- ----------------------------------------
<S> <C> <C> <C> <C> <C>
7343 W. Friendly Ave. S 1988 13,463 100% Executone Information Systems
7345 W. Friendly Ave. S 1988 12,300 100 Rule Manufacturing
7347 W. Friendly Ave. S 1988 17,978 93 Carter & Associates, Surf Air
7349 W. Friendly Ave. S 1988 9,840 100 Ardratech, Inc., Anderson & Associates
7351 W. Friendly Ave. S 1988 19,723 100 ACT MEDIA, Inc., Corporate Express,
Heritage Capital
7353 W. Friendly Ave. S 1988 22,826 100 Office Equipment Wholesalers, United
Dominion Industries
7355 W. Friendly Ave. S 1988 13,296 100 R.F. Micro Devices
Spring Garden Plaza
4000 Spring Garden St. S 1983 21,773 91 Lighting Creations, Inc.
4002 Spring Garden St. S 1983 6,684 100 Reynolds & Reynolds
4004 Spring Garden St. S 1983 23,724 92 N/A
Pomona Center -- Phase I
7 Dundas Circle S 1986 14,184 91 N/A
8 Dundas Circle S 1986 16,488 100 N/A
9 Dundas Circle S 1986 9,972 43 Netcom Cabling, Inc.
Pomona Center -- Phase II
302 Pomona Dr. S 1987 16,488 100 N/A
304 Pomona Dr. S 1987 4,344 100 Fortune Personnel
Consultants, OEC Fluid Handling, Inc.
306 Pomona Dr. S 1987 9,840 75 Aqua Science
308 Pomona Dr. S 1987 14,184 100 N/A
5 Dundas Circle S 1987 14,184 91 Engineering Consulting SV
Westgate on
Wendover -- Phase I
305 South Westgate Dr. S 1985 4,608 100 Alarmguard Security, Inc., The Computer
Store, Inc.
307 South Westgate Dr. S 1985 12,672 100 Incutech, Inc.
309 South Westgate Dr. S 1985 12,960 44 GEODAX Technology, Inc.,
Earth Tech, Inc.
311 South Westgate Dr. S 1985 14,400 110 N/A
315 South Westgate Dr. S 1985 10,368 78 N/A
317 South Westgate Dr. S 1985 15,552 93 N/A
319 South Westgate Dr. S 1985 10,368 78 N/A
Westgate on
Wendover -- Phase II
206 South Westgate Dr. S 1986 17,376 100 Home Care of the Central
Carolinas
207 South Westgate Dr. S 1986 26,448 100 Health Equipment Services
300 South Westgate Dr. S 1986 12,960 87 Health Equipment Services
4600 Dundas Circle S 1985 11,922 0 N/A
4602 Dundas Circle S 1985 13,017 61 Four Seasons Apparel Co.
Radar Road
500 Radar Rd. I 1981 78,000 100 N/A
502 Radar Rd. I 1986 15,000 100 East Texas Distributing, Inc.
504 Radar Rd. I 1986 15,000 100 Techno Craft, Inc.,
Dayva Industries
506 Radar Rd. I 1986 15,000 100 D&N International, Inc.
American Coatings of VA,
Wentworth Textiles
Holden/85 Business Park
2616 Phoenix Dr. I 1985 31,894 100 Pliana, Inc.
2606 Phoenix Dr. -- 100 S 1989 15,000 100 Piedmont Plastics, Inc., Rexam
Flexible Packaging Corporation
2606 Phoenix Dr. -- 200 S 1989 15,000 100 REHAU, Inc.,
Reynolds Renovations
2606 Phoenix Dr. -- 300 S 1989 7,380 100 N/A
2606 Phoenix Dr. -- 400 S 1989 12,300 90 Spectrum Financial Systems
2606 Phoenix Dr. -- 500 S 1989 15,180 100 The Record Exchange, Inc.
2606 Phoenix Dr. -- 600 S 1989 18,540 70 Faith & Victory Church
Industrial Village
7906 Industrial Village Rd. I 1985 15,000 100 Texas Aluminum Industries
7908 Industrial Village Rd. I 1985 15,000 100 Air Express, Pharmagraphics Holdings
7910 Industrial Village Rd. I 1985 15,000 100 Wadkin North America, Inc.
Consolidated Center
Consolidated Center I O 1983 40,000 100 Bali
Consolidated Center II O 1983 60,000 92 Bali, Aon Risk Services
Consolidated Center III O 1989 50,775 96 Lowes, Shelco, Inc.
Consolidated Center IV O 1989 29,312 100 Medcost, Inc.
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
Percent
Occupied at Tenants Leasing 25% or More
Building Year Rentable December 31, of Rentable Square Feet at
Property Type (1) Built Square Feet 1997(13) December 31, 1997
- ------------------------------- ---------- ------------ ------------- -------------- ---------------------------------------
<S> <C> <C> <C> <C> <C>
Other Piedmont Triad
Properties
101 S. Stratford O 1986 78,194 100% First Union, Triad
Guaranty Ins. Corporation
6348 Burnt Poplar I 1990 125,000 100 Sears
6350 Burnt Poplar I 1992 57,600 100 Industries for the Blind
Champion Madison Park II O 1993 105,723 100 Champion
Deep River I O 1989 78,094 78 N/A
Forsyth I O 1985 52,922 94 Management Directions
Regency One I 1996 127,600 100 New Breed Leasing Corporation
Regency Two I 1996 96,000 100 Duorr Medical Corporation
R.F. Micro Devices O 1997 49,505 100 R.F. Micro Devices
Stratford O 1991 135,533 88 BB&T
Chesapeake I 1993 250,000 100 Chesapeake Display &
Packaging
USAIR Buildings O 1970-1987 134,555 100 US AIR
3288 Robinhood O 1989 19,599 100 N/A
--------- ---
Total or Weighted Average 4,738,992 93%
========= ===
South Florida
- -------------------------------
1800 Eller Drive (6) O 1983 103,440 87 Renaissance Cruises
2828 Coral Way Building O 1985 64,000 96 Spanish Radio Network
Atrium At Coral Gables O 1984 164,528 100 Prosource
Atrium West O 1983 92,014 93 GSA
Avion Building O 1985 66,908 91 N/A
Centrum Plaza O 1988 40,938 98 N/A
Comeau Building O 1926 87,302 66 N/A
Corporate Square O 1981 87,823 95 N/A
Dadeland Office Complex O 1972 240,148 86 N/A
Design Center Plaza O 1982 57,500 94 Carnival Air Lines, Inc.
Doral Financial Plaza O 1987 222,000 72 Sun Bank
Emerald Hills Plaza I O 1979 63,401 94 N/A
Emerald Hills Plaza II O 1979 74,218 76 Sheridan Health Corp
Gulf Atlantic (7) O 1986 134,776 97 N/A
Highwoods Plaza O 1980 80,260 100 N/A
Highwoods Square O 1989 148,945 99 N/A
One Boca Place O 1987 277,630 94 N/A
Palm Beach Gardens Office O 1984 67,657 95 N/A
Park
Pine Island Commons O 1985 60,810 74 N/A
Venture Corporate Center I O 1982 82,224 96 Conroy, Simberg & Lewis
Venture Corporate Center II O 1982 83,737 97 H.I.P. Health Plan Of Florida, Michael
Swerdlow Companies
Venture Corporate Center III O 1982 83,785 100 H.I.P. Health Plan of Florida
--------- ---
2,384,044 90%
========= ===
Nashville, TN
- -------------------------------
Maryland Farms
Eastpark 1 O 1978 29,797 100 Brentwood Music, Volunteer
Credit Corporation
Eastpark 2 O 1978 85,516 100 PMT Services, Inc.
Eastpark 3 O 1978 77,480 100 N/A
Harpeth II O 1984 78,220 100 N/A
Harpeth III O 1987 78,989 100 Alcoa Fujikura Ltd.
Harpeth IV O 1989 77,694 100 USF&G, L.M. Berry Co.
Highwoods Plaza I O 1996 102,593 100 TCS Management Group, Inc.
Highwoods Plaza II O 1997 102,052 100 TCS Management Group, Inc.,
Windy Hill Pet Food Co.
EMI/Sparrow O 1982 59,656 100 EMI Christian Music Group
5310 Maryland Way O 1994 76,615 100 Bell South
Grassmere
Grassmere I S 1984 87,902 100 Contel Cellular of Nashville, Inc.
Grassmere II S 1985 145,092 90 N/A
Grassmere III S 1990 103,000 100 Harris Graphics Corporation
</TABLE>
11
<PAGE>
<TABLE>
<CAPTION>
Percent
Occupied at Tenants Leasing 25% or More
Building Year Rentable December 31, of Rentable Square Feet at
Property Type (1) Built Square Feet 1997(13) December 31, 1997
- ------------------------------- ---------- ------------ ------------- -------------- -----------------------------------------
<S> <C> <C> <C> <C> <C>
Other Nashville Properties
Century City Plaza I O 1987 56,161 96% N/A
Lakeview O 1986 99,722 100 The Kroger Co.
3401 Westend O 1982 255,137 99 N/A
BNA O 1985 234,198 98 N/A
100 Winner's Circle O 1987 71,661 100 American Color Graphics, McDonald's
--------- ---
Total or Weighted Average 1,821,485 98%
========= ===
Orlando, FL
- -------------------------------
Metrowest I O 1988 102,019 100 Hilton Grand Vacation Co.
Southwest Corporate Center O 1984 98,777 100 Walt Disney World Co.
Campus Crusade O 1990 165,000 100 Campus Crusade For Christ
ACP-W O 1966-1992 315,515 85 AT&T
Corporate Square (8) O 1971 46,915 96 L.J. Norarse, Valencia Community College
Executive Point Towers O 1978 123,038 87 AT&T
Lakeview Office Park O 1975 212,443 91 N/A
2699 Lee Road (9) O 1974 86,464 97 N/A
One Winter Park O 1982 62,564 97 N/A
The Palladium O 1988 72,278 100 Westinghouse Electric
201 Pine Street O 1980 241,601 95 N/A
Premiere Point North O 1983 47,871 96 Muscato Corporation
Premiere Point South O 1983 47,581 95 N/A
Shoppes Of Interlachen O 1987 49,705 89 N/A
Signature Plaza O 1986 272,931 83 N/A
Skyline Plaza O 1985 45,446 98 Hubbard Construction Co.
--------- ---
Total or Weighted Average 1,990,148 92%
========= ===
Jacksonville, FL
- -------------------------------
Towermarc Plaza O 1991 50,624 100 Aetna Casualty
Belfort Park I O 1988 63,925 92 Acr Systems, Inc.
Belfort Park II O 1988 56,633 90 Media One
Belfort Park III O 1988 84,294 89 Xomed, Inc.
Cigna Building O 1972 39,078 74 Insurance Co. of North America
Harry James Building O 1982 31,056 100 Aon
Independent Square O 1975 639,358 89 N/A
Three Oaks Plaza O 1972 257,028 95 N/A
Reflections O 1985 114,992 96 N/A
Southpoint Office Building O 1980 56,836 92 N/A
100 West Bay Street Building O 1964 71,315 74 Life Of The South Insurance
--------- ---
Total or Weighted Average 1,465,139 90%
========= ===
Charlotte, NC
- -------------------------------
Steele Creek Park
Building A I 1989 42,500 100 Comer MFG
Building B I 1985 15,031 100 Pumps Parts & Services
Building E I 1985 38,697 100 Bradman-Lake, Inc., Atlas Die, Inc.
Building G-1 I 1989 22,500 44 Safewaste Corporation
Building H I 1987 53,614 64 Sugravo Rallis Engraving, Inc.
Building K I 1985 19,400 100 Queen City Plastics, Inc.
Highwoods/Forsyth
Business Park
4101 Stuart Andrew Blvd. S 1984 11,573 100 N/A
4105 Stuart Andrew Blvd. S 1984 4,340 100 Re-Directions, Inc., Daltile,
G & E Engineering
4109 Stuart Andrew Blvd. S 1984 14,783 100 N/A
4201 Stuart Andrew Blvd. S 1982 19,004 100 Medstaff Contract Nursing
4205 Stuart Andrew Blvd. S 1982 23,042 100 Sunbelt Video, Inc.
4209 Stuart Andrew Blvd. S 1982 15,578 100 N/A
4215 Stuart Andrew Blvd. S 1982 23,372 98 Rodan, Inc.
4301 Stuart Andrew Blvd. S 1982 38,662 99 Circle K
4321 Stuart Andrew Blvd. S 1982 12,018 83 Dilan
Parkway Plaza
Building 1 O 1982 57,584 99 BASF Corporation
Building 2 O 1983 87,314 70 N/A
Building 3 O 1984 81,821 93 N/A
Building 6 (10) O 1996 40,708 100 Hewlett-Packard
Building 7 (11) O 1985 60,722 100 Barclays American Mortgage
Building 8 (11) O 1986 40,615 100 Barclays American Mortgage
Building 9 (11) I 1984 110,000 100 BB&T
</TABLE>
12
<PAGE>
<TABLE>
<CAPTION>
Percent
Occupied at Tenants Leasing 25% or More
Building Year Rentable December 31, of Rentable Square Feet at
Property Type (1) Built Square Feet 1997(13) December 31, 1997
- ---------------------------- ---------- ------- ------------- -------------- ----------------------------------------------
<S> <C> <C> <C> <C> <C>
Oakhill Business Park
Twin Oaks O 1985 97,115 88% Springs Industries, Inc.
Water Oak O 1985 95,636 97 N/A
Scarlet Oak O 1982 76,584 87 Krueger Ringier, Inc.
English Oak O 1984 54,865 100 The Employers Association of
the Carolinas
Willow Oak O 1982 36,560 0 N/A
Laurel Oak O 1984 34,536 100 Paramount Parks Inc.,
Woolpert Consultants, AG
Live Oak O 1989 82,431 97 CHF Industries
Other Charlotte Properties
First Citizens O 1989 57,171 64 N/A
Pinebrook O 1986 60,814 95 Keycorp Corporate Real Estate
--------- ---
Total or Weighted Average 1,428,590 89%
========= ===
Richmond, VA
- ----------------------------
Innsbrook Office Center
Liberty Mutual O 1990 57,915 100 Capital One, Liberty Mutual
Markel American O 1988 38,867 91 Mark IV Realty Corporation
Proctor-Silex O 1986 58,366 100 Proctor-Silex, Inc.
Vantage Place I O 1987 13,584 100 Rountrey and Associates, Spencer Printing Co.
Vantage Place II O 1987 14,822 100 Government Entities
Vantage Place III O 1988 14,389 100 Broughton Systems, Inc.
Vantage Place IV O 1988 13,441 35 Cemetary Mgmt.
Vantage Point O 1990 64,898 86 EDS, Nationwide Insurance
Innsbrook Tech I S 1991 18,350 89 Air Specialists of VA
DEQ Technology Center O 1991 53,554 93 FirstHealth, Dept. of Environmental Quality
DEQ Office O 1991 70,423 100 Circuit City
Aetna O 1989 99,209 97 N/A
Highwoods One O 1996 124,375 100 Amtec Technologies, Dynex Capital
Technology Park
Virginia Center O 1985 119,672 90 N/A
Other Richmond Properties
Westshore I O 1995 18,775 100 Snyder Hunt Corporation
Westshore II O 1995 27,714 100 Hewlett-Packard
Westshore III O 1997 56,500 56 K-Line America,Inc.
Shockoe Alleghany O 1996 118,518 100 The Martin Agency, Inc.
Warehouse
Airport Center 1 I 1997 141,613 100 Federal Express, Stone
Container Corporation
The Richfood Building O 1997 75,618 80 N/A
Grove Park O 1997 61,258 10 N/A
East Cary Street O 1987 16,865 66 Butler, Macon Et. Al.
--------- ---
Total or Weighted Average 1,278,726 89%
========= ===
Greenville, SC
- ----------------------------
Brookfield Corporate
Center
Brookfield-Jacobs-Sirrine O 1990 228,345 100 Jacobs-Sirrine Engineers, Inc.
Brookfield Plaza O 1987 117,982 94 CSC Continuum, Inc.
Brookfield-YMCA S 1990 15,500 46 Kids & Company at Pelham
Falls, Inc.
Patewood Plaza Office Park
Patewood Business Center S 1983 103,302 92 N/A
Patewood V O 1990 100,187 100 Bell Atlantic Mobile Systems,
Inc., PYA/Monarch, Inc.
Patewood IV O 1989 61,649 100 MCI
Patewood III O 1989 61,539 94 MCI
Patewood I O 1985 57,136 100 Metropolitan Life Ins. Co
Patewood II O 1987 60,168 79 Coats & Clark, Inc.
Other Greenville Properties
NationsBank Plaza (12) O 1973 195,833 79 N/A
--------- ---
Total or Weighted Average 1,001,641 91%
========= ===
Memphis, TN
- ----------------------------
Southwind
Office Center "A" O 1991 62,179 100 Promus Hotels, Inc.
Office Center "B" O 1990 61,860 64 N/A
Highwoods Office Center O 1997 69,023 66 Check Solutions
</TABLE>
13
<PAGE>
<TABLE>
<CAPTION>
Percent
Occupied at Tenants Leasing 25% or More
Building Year Rentable December 31, of Rentable Square Feet at
Property Type (1) Built Square Feet 1997(13) December 31, 1997
- ------------------------------- ---------- ------- ------------- -------------- ----------------------------------
<S> <C> <C> <C> <C> <C>
Other Memphis Properties
Atrium I O 1984 42,124 100% Baptist Memorial Health Care
Atrium II O 1984 42,099 100 Mueller Streamline Co.
International Place Phase II O 1988 208,014 94 International Paper Company
Kirby Centre O 1984 32,007 100 Financial Federal Savings Bank,
Union Central Life
Insurance Co.
Medical Properties, Inc. O 1988 18,079 100 Health Tech Affiliates, Inc.
Centrum Building O 1979 71,164 96 NationsBank
---------- ---
Total or Weighted Average 606,549 90%
========== ===
Baltimore
- -------------------------------
9690 Deereco Road O 1989 132,835 99 N/A
375 West Padonia Road (The O 1986 100,800 99 N/A
Atrium)
Business Center at Owings O 1989 43,753 99 N/A
Mills 7
Business Center at Owings O 1989 39,195 99 N/A
Mills 8
Business Center at Owings O 1988 47,851 99 N/A
---------- ---
Mills 9
364,434 99%
========== ===
Columbia, SC
- -------------------------------
Fontaine Business Center
Fontaine I O 1985 98,100 99 Blue Cross and Blue Shield of
S.C.
Fontaine II O 1987 72,468 100 Blue Cross and Blue Shield of
S.C.
Fontaine III O 1988 57,888 100 Companion Health Care Corporation
Fontaine V O 1990 21,107 100 Roche Biomedical
Laboratories, Inc.
Other Columbia Properties
Center Point I O 1988 72,565 93 Sedgewick James of South
Carolina, Inc., Alltel Mobile
Communication
Center Point II O 1996 81,466 46 Bell South
Center Point V O 1997 20,144 63 DS Atlantic Corporation,
---------- ---
Hewlett Packard
Total or Weighted Average 423,738 86%
========== ===
Tallahassee
- -------------------------------
Blair Stone Building O 1994 244,676 100% State of Florida
========== ===
Norfolk, VA
- -------------------------------
Battlefield I S 1987 97,633 100 Kasei Memory Products, Inc.
Greenbrier Business Center O 1984 81,194 100 Canon Computer Systems,
Inc., Roche Biomedical
Laboratories, Inc.
Riverside Plaza O 1988 87,030 93 First Hospital Corporation
---------- ---
Total or Weighted Average 265,857 98%
========== ===
Birmingham, AL
- -------------------------------
Grandview I O 1989 115,289 100% N/A
========== ===
Asheville, NC
- -------------------------------
Ridgefield 300 O 1989 63,500 100 N/A
Ridgefield 200 S 1987 60,677 100 Medical Business Resource
---------- ---
Total or Weighted Average 124,177 100%
========== ===
Ft Myers
- -------------------------------
Sunrise Office Center O 1974 51,831 67% N/A
========== === ===
Total or Weighted Average
of All Properties 30,720,854 94%
========== ===
</TABLE>
14
<PAGE>
- ----------
(1) I = Industrial, S = Service Center and O = Office.
(2) The property is subject to a land lease expiring August 31, 2023. Rental
payments on this lease are to be adjusted in 1998 and 2013 based on the
consumer price index. The Operating Partnership has a right of first
refusal to purchase the leased land during the lease term.
(3) The six properties are subject to land leases expiring December 31, 2058.
(4) The property is subject to a ground lease expiring May 31, 2002.
(5) The four properties are subject to land leases expiring December 31, 2058.
Rental payments on these leases are adjusted yearly based on a stated
percentage of each property's cash flow over a base amount.
(6) The property is subject to a ground lease expiring January 31, 2031.
Rental payments on this lease are to be adjusted every five years based on
the consumer price index.
(7) The property is subject to a ground lease expiring February 14, 2033.
(8) The property is subject to a ground lease expiring November 30, 2036.
Rental payments on this lease are to be adjusted every five years based on
the consumer price index.
(9) The property is subject to a ground lease expiring May 25, 2020.
(10) The property is subject to a land lease expiring December 31, 2071.
(11) The three properties are subject to a ground lease expiring December 31,
2082. The Operating Partnership has the option to purchase the land during
the lease term at the greater of $35,000 per acre or 85% of appraised
value.
(12) The property is subject to two land leases expiring September 30, 2069 and
a land lease expiring August 31, 2069.
(13) Includes 405,000 rentable square feet leased but not occupied.
Development Land
As of December 31, 1997, the Operating Partnership owned 718 acres and had
committed to purchase over the next six years an additional 512 acres of land
for development. The Operating Partnership estimates that it can develop
approximately 16 million square feet of office and industrial space on the
Development Land.
All of the Development Land is zoned and available for office or
industrial development, substantially all of which has utility infrastructure
already in place. The Operating Partnership believes that the cost of
developing the Development Land could be financed with the funds available from
the Operating Partnership's existing credit facilities, additional borrowings
and offerings of equity and debt securities. The Operating Partnership believes
that its commercially zoned and unencumbered land in existing business parks
gives the Operating Partnership an advantage in its future development
activities over other commercial real estate development companies in many of
its markets. Any future development, however, is dependent on the demand for
industrial or office space in the area, the availability of favorable financing
and other factors, and no assurance can be given that any construction will
take place on the Development Land. In addition, if construction is undertaken
on the Development Land, the Operating Partnership will be subject to the risks
associated with construction activities, including the risk that occupancy
rates and rents at a newly completed property may not be sufficient to make the
property profitable, construction costs may exceed original estimates and
construction and lease-up may not be completed on schedule, resulting in
increased debt service expense and construction expense.
15
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized, in the City of
Raleigh, State of North Carolina, on May 19, 1998.
HIGHWOODS/FORSYTH LIMITED PARTNERSHIP
By: Highwoods Properties, Inc., in its
capacity as general partner (the
"General Partner")
By: /s/ Carman J. Liuzzo
------------------------------------------
Carman J. Liuzzo, Vice President and
Chief Financial Officer
16
