VIRGINIA BEACH, VA—Two locally-based REITs, Wheeler Real Estate Investment Trust, and Armada Hoffler Properties, have increased their portfolios with local retail real estate acquisitions.
Wheeler REIT acquired the nearly 100,000-square-foot Chesapeake Square Shopping Center in Onley, VA from an affiliated entity of the company for approximately $6.34 million, or $63.49-per-leasable-square-foot. Wheeler used a combination of cash and operating partnership units to purchase Chesapeake Square.
Armada Hoffler Properties reports it has closed on the acquisition of the fully-leased Columbus Village, a retail center in Virginia Beach, VA. The 65,000-square-foot retail center sits on five acres adjacent to the Town Center of Virginia Beach and is a prime target for redevelopment and ultimate integration into the Town Center environment, the company states.
The company acquired the property for 1.275 million operating partnership units and the assumption of $8.8 million of debt. Of the equity that will be issued in this transaction, 1 million units will not earn or accrue distributions for 24 months and 275,000 units will not earn or accrue distributions for 30 months, Armada Hoffler states. The interim distributions that would have been paid on these operating partnership units at the current dividend rate—approximately $1.8 million—will positively impact the company's dividend payout ratio over the next three years.
Chesapkeake Square, which was purchased at a discount to replacement cost, also used operating partnership units along with available capital from its recent financing.
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