Armada Hoffler Completes Successful Disposition of South Carolina Retail Assets
VIRGINIA BEACH, Va., Jan. 06, 2025 (GLOBE NEWSWIRE) -- Armada Hoffler (NYSE:AHH) completed a successful exit from two retail real estate assets in South Carolina. The Company closed the sales of Nexton Square in Summerville, South Carolina and Market at The Mill Creek in Mount Pleasant, South Carolina on December 18, 2024.
Both properties were sold to the same undisclosed buyer for $82 million. Armada Hoffler capitalized on the heightened demand for Southeast U.S. retail assets, exiting at a blended cap rate in the low 6% range. Both assets were fully stabilized at the time of the sale.
Armada Hoffler teamed with local sponsors to develop and deliver both Nexton Square and Market at Mill Creek. The $82 million aggregate sales price represents a +20% profit spread over cost, proving out the Company's initial development thesis.
The transaction enabled Armada Hoffler to repay the Nexton Square mortgage, which was the most expensive variable-rate loan in the portfolio, and harvest nearly $60 million of cash equity for future redeployment into higher growth opportunities.
"We are pleased with the outcome of this disposition as we closed out a productive 2024," said Shawn Tibbetts, Chief Executive Officer and President of Armada Hoffler. "We plan to redeploy the proceeds into acquisitions that align with our long-term strategy while taking advantage of further arbitrage opportunities and utilizing it as a capital source as we head into the new year."
Nexton Square is an unanchored 133,608-square-foot open-air lifestyle center in Summerville, South Carolina. Located at the entrance of a 4,500-acre master-planned community, the center serves as the retail gateway to over 10,000 new single-family and multifamily units. Nexton Square opened in 2020.
Market at Mill Creek is anchored by a 50,000-square-foot Lowes Foods grocery store and includes an additional 23,000 square feet of inline shop space. The center opened in early 2018.
About Armada Hoffler
Armada Hoffler is a vertically integrated, self-managed real estate investment trust ("REIT") with over four decades of experience developing, building, acquiring, and managing high-quality, institutional-grade office, retail, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. In addition to developing and building properties for its own account, the Company also provides development and general contracting construction services to third-party clients. Founded in 1979 by Daniel A. Hoffler, the Company has elected to be taxed as a REIT for U.S. federal income tax purposes. For more information, visit ArmadaHoffler.com.
Forward-Looking Statements
Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement. These statements relate to the prospects of the Company and the appointment of Mr. Tibbetts to the Board of Directors. The forward-looking statements presented herein are based on the Company's current expectations. For a description of factors that may cause the Company's actual results or performance to differ from its forward-looking statements, please review the information under the heading "Risk Factors" included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, and the other documents filed by the Company with the Securities and Exchange Commission from time to time. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein, to reflect any change in the Company's expectations with regard thereto, or any other change in events, conditions or circumstances on which any such statement is based, except to the extent otherwise required by applicable law.
Contact:
Chelsea Forrest
Armada Hoffler
VP of Corp. Comms. and Investor Relations
Email: cforrest@armadahoffler.com
Phone: (757) 366-4000
