Armada Hoffler Announces 45,000 Square Foot Office Lease at Southern Post in Roswell, Georgia

Rhea-AI Summary

Armada Hoffler (NYSE: AHH) announced the addition of a 45,000 square foot corporate office tenant at its Southern Post mixed-use development in Roswell, Georgia, as the project nears completion. The company continues to attract substantial office, retail, and residential activity, with 76% of the retail portion already leased. The project includes luxury apartments, loft-style offices, retail space, and high-end townhomes. The addition of major corporate office users and retailers demonstrates the appeal of the project, positioning it as an ideal choice for contemporary tenants.

Insights

Market Research Analyst

The announcement of a 45,000 square foot corporate office tenant at Armada Hoffler's Southern Post mixed-use development signifies a strong market demand for such environments. The trend towards mixed-use developments has been gaining momentum, as these projects offer a blend of residential, commercial and retail spaces that cater to a modern lifestyle preference for convenience and accessibility. The ability of Southern Post to prelease a significant portion of its space prior to completion indicates a high level of market confidence in the project's success and the attractiveness of the Roswell, Georgia area for businesses and residents alike.

From a market research perspective, the diversification of tenant types, including luxury apartments, loft-style offices and retail spaces, positions the development to weather economic fluctuations by not being overly reliant on a single type of tenant. Additionally, the strategic location and the built environment of Southern Post are likely to contribute to sustained demand, which can lead to stable rental income and potential for long-term asset appreciation for Armada Hoffler and its investors.

Real Estate Investment Analyst

In evaluating the financial implications of the new lease agreements at Southern Post, the increase in leased space is a positive indicator for Armada Hoffler's revenue stream. Occupancy rates are a critical metric for real estate investment trusts (REITs) like Armada Hoffler, as they directly impact earnings and, consequently, dividends to shareholders. The preleasing of 76% of the retail space and the addition of a major corporate tenant should be reflected in the company's net operating income, which is a key determinant of a REIT's value.

Investors should note that the relocation of CA South's headquarters to Southern Post, following this new lease, may also suggest a competitive advantage for Armada Hoffler in attracting high-profile tenants. This could enhance the company's reputation and lead to further leasing opportunities. However, investors should remain aware of the risks associated with concentration if a significant portion of revenue becomes dependent on a few large tenants.

Urban Development Expert

The Southern Post project exemplifies the shift in urban development towards mixed-use projects that serve as live-work-play environments. This model is increasingly preferred for its potential to create vibrant communities and reduce the reliance on transportation by integrating daily needs into one location. The success of such developments hinges on careful planning and the ability to attract a diverse tenant mix that can support a self-sustaining ecosystem.

The transformation of the former Roswell Plaza into Southern Post reflects a broader trend in urban redevelopment where underutilized spaces are reimagined to meet contemporary demands. For municipalities and stakeholders, these projects can revitalize local economies and increase property values. However, it's important to ensure that these developments remain inclusive and do not contribute to displacement or gentrification pressures.

Company continues to see demand for mixed-use project in anticipation of spring 2024 opening

VIRGINIA BEACH, Va., Feb. 02, 2024 (GLOBE NEWSWIRE) -- Armada Hoffler (NYSE: AHH) announced a 45,000 square foot corporate office tenant will join the robust tenant lineup at its Southern Post mixed-use development in Roswell, Georgia. The project continues to attract substantial office, retail and residential activity as it moves closer to its expected completion this spring.

“This expansive lease is a testament to the appeal of Southern Post,” said Louis Haddad, President and CEO of Armada Hoffler. “Major corporate office users want to be in vibrant mixed-use environments that appeal to employees and customers alike. We are seeing huge demand across each of Southern Post’s components because the project embodies the ideal model for a successful mixed-use project.”

Armada Hoffler’s Southern Post is a 4.27-acre mixed-use development that is transforming the former site of Roswell Plaza into a carefully curated destination with 128 luxury apartments, 90,000 square feet of loft-style, open-concept offices, 40,000 square feet of retail space, and an exclusive offering of nine high-end townhomes with garages.

This lease comes shortly after Armada Hoffler finalized a 7,400 square foot office lease with CA South at Southern Post. The construction firm based in Atlanta is relocating its headquarters from The Battery in Cobb County, Georgia to Southern Post.

“Southern Post aligns perfectly with the needs of contemporary office tenants. It offers both a uniquely built environment and a strategic location, making it the ideal choice for tenants,” said Zach Wooten of Transwestern, who oversees office leasing at Southern Post on behalf of Armada Hoffler.

These new leases represent the continued momentum across all product types at Southern Post. In addition to dynamic office tenants, Armada Hoffler has attracted a vibrant mix of retailers and food and beverage operators to reach 76% leased for the retail portion. Southern Post’s multifamily component, Chandler Residences, recently launched preleasing with a substantial waiting list of prospective residents.

Transwestern’s Zach Wooten and Stephen Clifton represented the landlord, Armada Hoffler. Cushman and Wakefield’s Clinton McKellar and Sydney Mayson represented the tenant in the transaction.

About Armada Hoffler

Armada Hoffler (NYSE: AHH) is a vertically integrated, self-managed real estate investment trust (“REIT”) with over four decades of experience developing, building, acquiring, and managing high-quality multifamily, office, and retail 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 Forrest
Armada Hoffler
Director of Corporate Communications and Investor Relations
Email: CForrest@ArmadaHoffler.com
Phone: (757) 612-4248

FAQ

What is the latest update on Armada Hoffler's Southern Post mixed-use development?

Armada Hoffler announced the addition of a 45,000 square foot corporate office tenant at its Southern Post mixed-use development in Roswell, Georgia.

How much of the retail portion of the Southern Post development has been leased?

76% of the retail portion of the Southern Post development has already been leased.

What types of spaces are included in the Southern Post mixed-use development?

The Southern Post development includes luxury apartments, loft-style offices, retail space, and high-end townhomes.

Who represented the landlord in the recent lease transactions at Southern Post?

Transwestern's Zach Wooten and Stephen Clifton represented the landlord, Armada Hoffler.