COLONIAL HEIGHTS, VA—Armada Hoffler Properties is acquiring Dimmock Square, a retail power center here. Armada Hoffler is acquiring the center in exchange for 990,000 units of limited partnership interest in its operating partnership and $10 million of cash.
The fully-occupied center is adding some 100,000 square feet to the REIT's portfolio.
Tenants include Best Buy, Pier 1, Old Navy, Dress Barn and Shoe Carnival among others. The center also includes a separately-owned 117,000 square foot Target store. It is located between the 900,000 square foot Southpark Mall and a Walmart Supercenter.
The acquisition is expected to be accretive to annual FFO per diluted share. It will close in the third quarter of 2014.
Separately, Armada Hoffler announced its second quarter earnings and raised its full year guidance, partly based on assumptions about Dimmock Square, which is expected to positively impact Core FFO by $470,000, assuming a mid-third quarter 2014 closing.
It also announced that West Elm, Free People, lululemon, francesca's and Tupelo Honey Cafe have signed leases for retail space at the Town Center of Virginia Beach.
Also revealed in its earnings report: the REIT has entered into an agreement to sell the Virginia Natural Gas office building, located near Town Center, for approximately $8.9 million, representing approximately 6.25% cap rate.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
