VIRGINIA BEACH, VA—Armada Hoffler Properties is acquiring 11 retail centers located throughout the Mid-Atlantic and south central US for $170.5 million in cash.
It didn't name the seller of the portfolio, which is 94% leased and totals 1.1 million square feet. What it did announce, though, was that it would be funding it in part with the proceeds of the Richmond Tower, a 15-story, 206,969 square foot office building in downtown Richmond that went under contract for $78 million. During the REIT's recent earnings call, executives stressed that they weren't sure how the proceeds would be deployed and therefore would be unable to provide 2016 guidance. CFO Michael O'Hara said the company would give an update once the Richmond Tower sale closed and its reinvestment plan finalized.
Clearly, then, the portfolio acquisition is important to the REIT and while the company remains a prolific builder -- it recently announced a $93 million investment in Baltimore's Point Street Apartments project -- it has also been seeking to develop a stronger presence in the Carolinas.
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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.
