RBC Centura Selects Highwoods Properties to Develop New Headquarters; 29-Story Mixed-Use Tower Will Soar above Downtown Raleigh

Business Wire, Dec 6, 2005

RALEIGH, N.C. -- RBC Centura Bank today announced that it has selected Highwoods Properties Inc. (NYSE:HIW) to develop its new corporate headquarters in downtown Raleigh at the corner of Fayetteville, Martin and Wilmington streets.

Highwoods plans to build a 29-story mixed-use complex that will include office and retail space, as well as 10 stories of residential condominiums. RBC Centura intends to move its headquarters to the building when it opens in 2008.

"We're excited about this partnership to develop our headquarters complex and the opportunity to contribute to the revitalization of downtown and take Raleigh's skyline to new heights," said Scott Custer, CEO of RBC Centura. "RBC Centura's plan to relocate our headquarters to the state capital is important to the bank's growth and business opportunities, and we are confident that this project will contribute to the long-term success of the bank."

RBC Centura considered several development proposals for its headquarters complex before selecting Highwoods to undertake and manage the project. Highwoods will serve as the master developer, Dominion Realty Partners as the residential developer and Cooper Carry as the architect for the building.

"We are eager to develop this vertically integrated, mixed-use project, which will be home to RBC Centura's new U.S. headquarters and other businesses," said Ed Fritsch, president and CEO of Highwoods. "Since its founding in Raleigh in 1978, Highwoods has invested well over $1.5 billion in new development, of which more than $400 million has been in the Triangle. We remain committed to the growth and prosperity of our community and are excited to participate in the rebirth of downtown Raleigh."

Throughout the selection process, the Highwoods team has worked diligently with the leadership of RBC Centura, Progress Energy, Wake County and the City of Raleigh to deliver an ideal site and design to achieve RBC Centura's objectives while remaining true to the vision of Raleigh's downtown renaissance.

"We look forward to breaking ground and beginning the construction process next summer," said Fritsch.

The bank selected the Highwoods proposal because it is a mixed-use plan that includes an office tower that will enhance the downtown skyline, a residential project that will appeal to people seeking an urban-living experience and an overall concept that will be a strong addition to the revitalization of downtown.

"The building we selected will make downtown Raleigh an even better place to work, live and play," said Custer.

This project will be located on a 0.83 acre parcel, will stand approximately 400 feet tall and will encompass more than 710,000 square feet of space. The complex will house RBC Centura's corporate offices, an RBC Centura branch bank, street-level retail space, a seven-level parking deck, five floors of for-lease office space and approximately 140 residential condominium units.

RBC Centura is a U.S. bank subsidiary of Royal Bank of Canada. It has $20 billion in assets and more than 3,600 employees in North Carolina, South Carolina, Virginia, Georgia and Florida. The company has 273 banking centers across these states. Approximately 300 employees currently work in Raleigh, and the bank expects that number to grow to approximately 500 workers by 2009.

Quick facts about the project:

Product

--Vertically integrated mixed-use (retail, parking, office, residential) tower

Master Developer

--Highwoods Properties Inc. (NYSE: HIW)

Architect

--Cooper Carry

Residential Developer

--Dominion Realty Partners

Anchor Tenant

--RBC Centura

Scale

--Located on a 0.83-acre of land

--29 stories (approximately 400 feet) tall

--Approximately 710,000 gross square feet

Location

--RBC Centura's mixed-use corporate headquarters building will be bordered by Fayetteville, Martin and Wilmington streets in the heart of the city's business and entertainment district

Floors

--1 Retail & RBC Centura branch bank

--2-8 Enclosed parking

--9-18 Office

--19 Structural transfer floor

--20-29 Residential condominiums

Office Component

--Approximately 267,000 square feet of office space on 10 floors

--Approximately 25,000-square-foot floor plates

Retail Component

--Approximately 14,000 square feet of street-level retail space

Residential Component

--Approximately 140 for-sale condominium units

Parking

--Seven-level parking deck opens onto Wilmington Street with approximately 535 controlled-access parking spaces

--Approximately 460 additional parking spaces from the Progress Energy parking deck to be completed on Wilmington Street

RBC Centura's Corporate Offices

--Will lease a total of approximately 130,000 rentable square feet, comprised of:

--Approximately 126,000 square feet for corporate offices on floors nine through12, and floor 18

--Approximately 4,000 square feet for a lobby level banking center on the building's first floor

Appearance

--The building facade will be stone and glass on the first floor, transitioning to architectural pre-cast concrete and glass above

--At the condominium levels, the building skin becomes floor to ceiling glass