VIRGINIA BEACH, Va., — Armada Hoffler Properties, Inc. (NYSE: AHH) announced today that it has completed the acquisitions of Red Mill Commons and Marketplace at Hilltop in Virginia Beach, VA. The Company acquired both properties from Venture Realty Group for aggregate consideration of $105 million composed of 4.1 million Operating Partnership units each valued at $15.55, assumed mortgage debt of $36 million, and $5 million in cash. Venture Realty Group will continue to manage and lease both properties.
“We are pleased to add both Red Mill and Hilltop to our portfolio,” said Louis Haddad, President & Chief Executive Officer of Armada Hoffler Properties. “Both are high-quality, well-located retail centers with long histories of healthy rental rate growth, high occupancy, and strong sales volume. Simply put, this is some of the best real estate in the entire Norfolk/Virginia Beach MSA.”
Red Mill Commons is the dominant retail center in its submarket and is currently 97% occupied. The shopping center boasts a diverse mix of over 90 tenants across 374,000 square feet including T.J.Maxx, Homegoods, Dollar Tree, Outback Steakhouse, Walgreens, Panera, Buffalo Wild Wings, Starbucks, and Chipotle alongside shadow anchors Walmart, Target, and Home Depot. Marketplace at Hilltop is located in one of the most densely populated and affluent areas of Virginia Beach. The 118,000 square foot retail center sits squarely in the heart of this high barrier-to-entry submarket less than three miles from the Virginia Beach oceanfront and adjacent to the only Whole Foods in the city. The tenant lineup includes a high-volume Total Wine store in addition to Michaels, Panera, Chick-fil-A, and Arby’s. The center is currently 100% occupied.
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.
About Venture Realty Group
Venture Realty Group formed in 2016 when Commercial Real Estate Services and Ellis-Gibson Development Group, both of Virginia Beach, joined forces following a long, successful relationship as real estate development partners. Together, the group has developed six million square feet of projects worth more than $600 million in the Hampton Roads market. Venture Realty Group leverages decades of expertise in four key areas: strategic mixed-use developments, single tenant build-to-suit transactions, regional shopping center projects, and joint venture partnerships with various prominent landowners throughout Southeast Virginia.
Michael P. O’Hara
Armada Hoffler Properties, Inc.
Chief Financial Officer, Treasurer, and Secretary
Phone: (757) 366-6684