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VIRGINIA BEACH, VA—Armada Hoffler Properties has entered into a definitive agreement with an institutional buyer to sell a portfolio of seven grocery-anchored assets for $106.5 million.
The properties are located in North Carolina, Virginia and Maryland. The sale shows that despite recent volatility in the capital markets, institutional demand for stabilized retail assets remains strong, CEO Louis Haddad, says in prepared remarks.
The 630,000-square foot portfolio sale is part of the REIT's previously announced recycling program and it plans to use $45 million of the proceeds to pay down debt and move forward with identified asset acquisitions. "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," Haddad says.
The sale is expected to close in the second quarter of 2020, subject to customary closing conditions.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
