Armada Hoffler Completes $150 Million Sale of The Residences at Annapolis Junction at a 4.15% Exit Cap Rate

Rhea-AI Summary

Armada Hoffler (NYSE: AHH) announced the successful sale of The Residences at Annapolis Junction, a 416-unit apartment community, for $150 million. This sale, finalized on July 22, 2022, is part of the company's strategy to dispose of $177 million in noncore assets, achieving a blended exit cap rate of 4.1%. CEO Lou Haddad highlighted that these proceeds will fulfill the company’s equity needs for the year and facilitate ongoing development projects without the need for capital market access. The property was 97% occupied at the time of the sale.

Positive

• Successfully sold noncore asset for $150 million, exceeding asset sale goals.
• Achieved a blended exit cap rate of 4.1%, indicating favorable market conditions.
• Proceeds from sales will satisfy equity needs, allowing continued development without additional capital raising.

Negative

• None.

VIRGINIA BEACH, Va., July 25, 2022 (GLOBE NEWSWIRE) -- Armada Hoffler (NYSE: AHH) successfully completed the sale of The Residences at Annapolis Junction, a 416-unit suburban mid-rise apartment community in Howard County, Maryland for $150 million. The transaction closed on July 22, 2022.

“With the sale of The Residences at Annapolis Junction, I am pleased to report that we’ve successfully completed the disposition of $177 million of noncore assets at a blended 4.1% exit cap rate,” said Lou Haddad, President and CEO of Armada Hoffler. “Last quarter, we set a goal of selling up to $200 million of noncore assets at cap rates in the mid 4% cap range. In less than three months’ time, we not only achieved, but exceeded our price target. More importantly, the proceeds generated from these noncore asset sales will satisfy our equity needs for the remainder of the year and probably well beyond. These transactions allow us to execute on our current development pipeline without accessing the capital markets.”

The Company completed construction of The Residences at Annapolis Junction in 2017. The LEED Gold certified property was 97% occupied at the time of sale.

About Armada Hoffler
Armada Hoffler (NYSE: AHH) is a vertically-integrated, self-managed real estate investment trust with over 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 Forrest
Armada Hoffler
Director of Corporate Communications and Investor Relations
Email: CForrest@ArmadaHoffler.com
Phone: (757) 612-4248

FAQ

What was the recent sale completed by Armada Hoffler?

Armada Hoffler sold The Residences at Annapolis Junction for $150 million.

What was the cap rate achieved for the sale of The Residences at Annapolis Junction?

The sale achieved a blended exit cap rate of 4.1%.

How much did Armada Hoffler aim to sell in noncore assets?

Armada Hoffler aimed to sell up to $200 million in noncore assets.

When was the sale of The Residences at Annapolis Junction finalized?

The sale was finalized on July 22, 2022.

What percentage of The Residences at Annapolis Junction was occupied at the time of sale?

The property was 97% occupied at the time of sale.