Armada Hoffler Completes Successful Disposition of South Carolina Retail Assets
Armada Hoffler (NYSE: AHH) has successfully sold two retail properties in South Carolina for $82 million, achieving a 20% profit over cost. The transaction, completed on December 18, 2024, included Nexton Square in Summerville and Market at Mill Creek in Mount Pleasant, both sold to the same undisclosed buyer at a blended cap rate in the low 6% range.
The sale generated nearly $60 million in cash equity for future growth opportunities and enabled the company to repay the Nexton Square mortgage, which was their most expensive variable-rate loan. Nexton Square is a 133,608-square-foot open-air lifestyle center serving a 4,500-acre master-planned community, while Market at Mill Creek features a 50,000-square-foot Lowes Foods anchor store plus 23,000 square feet of inline shop space.
Armada Hoffler (NYSE: AHH) ha venduto con successo due proprietà retail in Carolina del Sud per 82 milioni di dollari, realizzando un profitto del 20% rispetto ai costi. La transazione, completata il 18 dicembre 2024, ha incluso Nexton Square a Summerville e Market at Mill Creek a Mount Pleasant, entrambe vendute allo stesso acquirente non divulgato con un tasso di capitalizzazione misto nella fascia bassa del 6%.
La vendita ha generato quasi 60 milioni di dollari in capitale contante per future opportunità di crescita e ha permesso all'azienda di ripagare il mutuo di Nexton Square, il quale era il loro prestito a tasso variabile più costoso. Nexton Square è un centro commerciale all'aperto di 123.608 piedi quadrati che serve una comunità pianificata di 4.500 acri, mentre Market at Mill Creek presenta un negozio principale Lowes Foods di 50.000 piedi quadrati e 23.000 piedi quadrati di spazi per negozi inline.
Armada Hoffler (NYSE: AHH) ha vendido con éxito dos propiedades comerciales en Carolina del Sur por 82 millones de dólares, logrando una ganancia del 20% sobre el coste. La transacción, completada el 18 de diciembre de 2024, incluyó Nexton Square en Summerville y Market at Mill Creek en Mount Pleasant, ambas vendidas al mismo comprador no revelado a una tasa de capitalización combinada en el rango bajo del 6%.
La venta generó casi 60 millones de dólares en capital en efectivo para futuras oportunidades de crecimiento y permitió a la compañía pagar la hipoteca de Nexton Square, que era su préstamo a tasa variable más costoso. Nexton Square es un centro comercial al aire libre de 123,608 pies cuadrados que sirve a una comunidad planificada de 4,500 acres, mientras que Market at Mill Creek cuenta con una tienda ancla Lowes Foods de 50,000 pies cuadrados más 23,000 pies cuadrados de espacio para tiendas inline.
Armada Hoffler (NYSE: AHH)는 남부 캐롤라이나에서 두 개의 소매 부동산을 8200만 달러에 성공적으로 매각하여 비용에 비해 20%의 수익을 올렸습니다. 2024년 12월 18일 완료된 이번 거래에는 Summerville의 Nexton Square와 Mount Pleasant의 Market at Mill Creek가 포함되어 있으며, 두 곳 모두 동일한 비공식 구매자에게 매각되고 6% 초반대의 혼합 자본 수익률을 기록했습니다.
이번 매각으로 6000만 달러에 가까운 현금 자본이 생성되어 미래 성장 기회에 활용될 수 있었고, 회사는 가장 비쌌던 변동 금리 대출인 Nexton Square의 주택 담보 대출을 상환할 수 있었습니다. Nexton Square는 4500에이커 마스터 플랜 커뮤니티에 서비스를 제공하는 123,608평방피트의 오픈 에어 라이프스타일센터이며, Market at Mill Creek는 50,000평방피트의 Lowes Foods 앵커 스토어와 23,000평방피트의 인라인 상점 공간을 갖추고 있습니다.
Armada Hoffler (NYSE: AHH) a vendu avec succès deux propriétés commerciales en Caroline du Sud pour 82 millions de dollars, réalisant un profit de 20 % par rapport au coût. La transaction, achevée le 18 décembre 2024, a inclus Nexton Square à Summerville et Market at Mill Creek à Mount Pleasant, toutes deux vendues au même acheteur non divulgué à un taux de capitalisation combiné dans la fourchette basse de 6 %.
La vente a généré près de 60 millions de dollars en capitaux en espèces pour de futures opportunités de croissance et a permis à l'entreprise de rembourser le prêt hypothécaire de Nexton Square, qui était son prêt à taux variable le plus coûteux. Nexton Square est un centre commercial en plein air de 123 608 pieds carrés servant une communauté planifiée de 4 500 acres, tandis que Market at Mill Creek comprend un magasin phare Lowes Foods de 50 000 pieds carrés et 23 000 pieds carrés d'espace pour boutiques en ligne.
Armada Hoffler (NYSE: AHH) hat erfolgreich zwei Einzelhandelsimmobilien in South Carolina für 82 Millionen Dollar verkauft und dabei einen Gewinn von 20% über den Kosten erzielt. Die Transaktion, die am 18. Dezember 2024 abgeschlossen wurde, umfasste Nexton Square in Summerville und Market at Mill Creek in Mount Pleasant, beide wurden an denselben nicht offengelegten Käufer zu einem gemischten Kapitalisierungszinssatz im niedrigen 6%-Bereich verkauft.
Der Verkauf generierte fast 60 Millionen Dollar an Bar-Eigenkapital für zukünftige Wachstumschancen und ermöglichte es dem Unternehmen, die Hypothek von Nexton Square, die ihren teuersten variablen Darlehen war, zurückzuzahlen. Nexton Square ist ein 123.608 Quadratfuß großer Freiluftsizilcenter, das eine 4.500 Hektar große, mastergeplante Gemeinschaft bedient, während Market at Mill Creek ein 50.000 Quadratfuß großes Lowes Foods-Ankergeschäft sowie 23.000 Quadratfuß Inline-Shopfläche umfasst.
- Sale of two properties generated $82 million, achieving 20% profit over cost
- Transaction provided $60 million in cash equity for future investments
- Elimination of most expensive variable-rate loan from portfolio
- Both properties were fully stabilized at time of sale
- Divestment of revenue-generating retail assets from portfolio
Insights
This strategic disposition showcases astute market timing and portfolio optimization. The
The transaction's most compelling aspect is its impact on AHH's balance sheet and future growth potential. By divesting these assets, AHH eliminated its highest-cost variable rate debt while harvesting
The sale demonstrates AHH's ability to identify optimal exit points and capitalize on regional market dynamics. The Southeast's robust population growth and economic expansion have driven retail asset valuations, making this an opportune time to realize gains. The blended cap rate suggests strong buyer confidence in these assets' future performance, particularly given their strategic locations within high-growth submarkets.
This transaction represents a masterclass in portfolio rebalancing and capital recycling strategy. The disposition achieves multiple strategic objectives: profit realization, debt reduction and capital liberation for future opportunities. The timing is particularly shrewd given the current market dynamics where retail assets in high-growth Southeastern markets command premium valuations.
The successful exit from these stabilized assets reflects a sophisticated approach to market cycle timing. By selling fully-leased properties in a market with strong demographic tailwinds, AHH maximized value while creating dry powder for potential acquisitions in a market where some owners may face refinancing challenges. The elimination of variable-rate debt exposure also strengthens the company's interest rate risk profile.
Company closes sales of Nexton Square and Market at Mill Creek at blended
VIRGINIA BEACH, Va., Jan. 06, 2025 (GLOBE NEWSWIRE) -- Armada Hoffler (NYSE: AHH) completed a successful exit from two retail real estate assets in South Carolina. The Company closed the sales of Nexton Square in Summerville, South Carolina and Market at The Mill Creek in Mount Pleasant, South Carolina on December 18, 2024.
Both properties were sold to the same undisclosed buyer for
Armada Hoffler teamed with local sponsors to develop and deliver both Nexton Square and Market at Mill Creek. The
The transaction enabled Armada Hoffler to repay the Nexton Square mortgage, which was the most expensive variable-rate loan in the portfolio, and harvest nearly
“We are pleased with the outcome of this disposition as we closed out a productive 2024,” said Shawn Tibbetts, Chief Executive Officer and President of Armada Hoffler. “We plan to redeploy the proceeds into acquisitions that align with our long-term strategy while taking advantage of further arbitrage opportunities and utilizing it as a capital source as we head into the new year.”
Nexton Square is an unanchored 133,608-square-foot open-air lifestyle center in Summerville, South Carolina. Located at the entrance of a 4,500-acre master-planned community, the center serves as the retail gateway to over 10,000 new single-family and multifamily units. Nexton Square opened in 2020.
Market at Mill Creek is anchored by a 50,000-square-foot Lowes Foods grocery store and includes an additional 23,000 square feet of inline shop space. The center opened in early 2018.
About Armada Hoffler
Armada Hoffler is a vertically integrated, self-managed real estate investment trust ("REIT") with over four decades of experience developing, building, acquiring, and managing high-quality, institutional-grade office, retail, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. In addition to developing and building properties for its own account, the Company also provides development and general contracting construction services to third-party clients. Founded in 1979 by Daniel A. Hoffler, the Company has elected to be taxed as a REIT for U.S. federal income tax purposes. For more information, visit ArmadaHoffler.com.
Forward-Looking Statements
Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement. These statements relate to the prospects of the Company and the appointment of Mr. Tibbetts to the Board of Directors. The forward-looking statements presented herein are based on the Company's current expectations. For a description of factors that may cause the Company’s actual results or performance to differ from its forward-looking statements, please review the information under the heading “Risk Factors” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and the other documents filed by the Company with the Securities and Exchange Commission from time to time. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein, to reflect any change in the Company's expectations with regard thereto, or any other change in events, conditions or circumstances on which any such statement is based, except to the extent otherwise required by applicable law.
Contact:
Chelsea Forrest
Armada Hoffler
VP of Corp. Comms. and Investor Relations
Email: cforrest@armadahoffler.com
Phone: (757) 366-4000
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