Armada Hoffler Completes $24 Million Retail Sale at a 4.0% Exit Cap Rate
05 Juli 2022 - 12:00PM
Armada Hoffler (NYSE: AHH) announced that the Company closed on the
disposition of two single-tenant assets leased to Costco and Home
Depot, located in Durham, North Carolina for $24 million. The
transaction was completed on June 29, 2022.
The 4.0% exit capitalization rate represents a substantial
improvement over the 4.5% goal shared by the Company during its Q1
2022 Earnings Conference Call on May 3, 2022. The Company had
previously announced its intent to sell up to $200 million of
noncore assets that were expected to yield premium prices in the
current market environment before the end of the year.
"Despite recent market volatility, investor demand for high
credit, single-tenant, net leased assets with longer lease terms
remains strong,” said Lou Haddad, President and CEO of Armada
Hoffler. “After securing early long-term lease extensions with both
tenants, we capitalized on this demand and successfully transacted
at a price that far exceeded our expectations. As we discussed
earlier this year, selling assets in the low to mid 4% cap range
represents the most cost-effective funds available to us and should
have little, if any, impact on earnings. More importantly, this
disposition, along with others pending, allow us to self-fund our
equity needs for the remainder of the year.”
About Armada Hoffler, Inc.
Armada Hoffler (NYSE:AHH) is a vertically-integrated, self-managed
real estate investment trust with four decades of experience
developing, building, acquiring and managing high-quality office,
retail and multifamily properties located primarily in the
Mid-Atlantic and Southeastern United States. We also provide
general construction and development services to third-party
clients, in addition to developing and building properties to be
placed in our stabilized portfolio. Founded in 1979 by Daniel A.
Hoffler, Armada Hoffler has elected to be taxed as a REIT for U.S.
federal income tax purposes. For more information visit
ArmadaHoffler.com.
Contact:Chelsea ForrestArmada Hoffler,
Inc.Director of Corporate Communications and Investor
RelationsEmail: CForrest@ArmadaHoffler.com Phone: (757)
612-4248
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