VIRGINIA BEACH, Va., March 16, 2020 (GLOBE NEWSWIRE) -- As part of Armada Hoffler Properties’ (AHH: NYSE) previously announced asset recycling program, Armada Hoffler Properties announced today that it has entered into a definitive agreement with an institutional buyer to sell a portfolio of seven retail assets comprising over 630,000 square feet for $106.5 million. Management intends to use approximately $45 million of the proceeds from the sale to pay down debt and the remaining proceeds to consummate previously identified asset acquisitions.
“Despite recent volatility in the capital markets, institutional demand for stabilized retail assets remains strong,” said Louis Haddad, President & CEO of Armada Hoffler Properties. “We look forward to completing the disposition of these seven neighborhood shopping centers, many of which we developed and built. With anticipated gross proceeds of $106.5 million, we expect to complete the asset recycling initiative that we started last year and reach our ultimate goals of improving overall portfolio quality, increasing our NAV, and reducing leverage.”
The retail portfolio consists of the following grocery-anchored shopping centers:
| Property | Location | Built | Square Feet | Anchor |
| Alexander Pointe | Salisbury, NC | 1997 | 64,724 | Harris Teeter |
| Bermuda Crossroads | Chester, VA | 2001 | 122,566 | Food Lion |
| Gainsborough Square | Chesapeake, VA | 1999 | 88,862 | Food Lion |
| Harper Hill Commons | Winston-Salem, NC | 2004 | 96,914 | Harris Teeter |
| Indian Lakes Crossing | Virginia Beach, VA | 2008 | 64,973 | Harris Teeter |
| Renaissance Square | Davidson, NC | 2008 | 80,467 | Harris Teeter |
| Stone House Square | Hagerstown, MD | 2008 | 112,274 | Weis Markets |
| 630,780 |
The pending disposition is expected to be completed in the second quarter of 2020, subject to customary closing conditions. Management had already included the impact of the portfolio sale in its previously issued guidance for 2020.
About Armada Hoffler Properties, Inc.
Armada Hoffler Properties, Inc. (NYSE: AHH) is a vertically-integrated, self-managed real estate investment trust ("REIT") with 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.
