Red Mill Commons totals 374,000-square feet and is 98% occupied.

VIRGINIA BEACH, VA—In an off-market transaction between two locally-based firms, Armada Hoffler Properties, Inc. has agreed to acquire two retail centers here that will grow its local portfolio by nearly 500,000 square feet.

Armada Hoffler is planning to acquire the Red Mill Commons and Marketplace at Hilltop retail centers from Venture Realty Group for $105 million. The deal is comprised of 4.1 million operating partnership units each valued at $15.55, assumed mortgage debt of $36 million, and $5 million in cash. The transaction is expected to add $8.1 million of annual net operating income and be immediately accretive to Armada Hoffler's normalized FFO per share. Both off-market transactions are expected to close in the second quarter of this year. Venture Realty Group will continue to lease and manage the assets.

“We are pleased to add both Red Mill and Hilltop to our portfolio,” says Louis Haddad, president and CEO 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. We look forward to completing the transaction and creating significant value for both our current shareholders as well as our new OP unitholders.”