Armada Hoffler Properties Completes Sale of Charleston Student Housing Property

Rhea-AI Summary

Armada Hoffler Properties (NYSE: AHH) has successfully closed the sale of Hoffler Place in Charleston, SC, part of its strategy to exit student housing. This decision aligns with the company's focus on conventional apartment communities. The 74-unit property, completed in 2019 and 97% occupied at sale, is expected to enhance capital for future developments and acquisitions. The pending sale of Summit Place will conclude this transition. CEO Louis Haddad emphasized the opportunity for growth attributed to favorable market conditions.

Positive

• Sale of Hoffler Place will fund future growth opportunities.
• 97% occupancy rate of Hoffler Place indicates strong demand.
• Strategic exit from student housing allows focus on conventional multifamily properties.

Negative

• None.

VIRGINIA BEACH, Va., April 06, 2022 (GLOBE NEWSWIRE) -- Armada Hoffler Properties, Inc. (NYSE: AHH) announced the closing of the sale of Hoffler Place in Charleston, South Carolina. The disposition of the student housing property underscores the Company’s broader strategy to focus on conventional apartment communities when acquiring or developing multifamily assets.

“As we’ve said before, one of the strengths of a diversified model is our ability to adjust and adapt to changing economic dynamics,” said Louis Haddad, President & CEO of Armada Hoffler Properties. “Based on current, favorable market conditions, our student housing assets represent one of the most attractive sources of capital available to fund our future growth. We look forward to completing our strategic exit from student housing in the next few weeks and will continue to find the most cost-effective ways to produce the greatest returns for our shareholders.”

As detailed in previous earnings calls, Armada Hoffler Properties is executing a strategic plan to exit the student housing space and utilize the proceeds for new development and acquisition opportunities centered around conventional multifamily, mixed-use and grocery-anchored shopping center properties. Hoffler Place was one of two remaining student housing assets in the Company’s portfolio. The pending sale of Summit Place is anticipated to close by the end of the month.

Located at 595 King Street, Hoffler Place caters to students attending the nearby College of Charleston. The seven-story building includes 74 apartment units, 258 beds and 12,000 square feet of retail space. Armada Hoffler Properties completed construction of the building in 2019. At the time of the sale, Hoffler Place was 97% occupied.

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

FAQ

What did Armada Hoffler Properties announce on April 6, 2022?

Armada Hoffler Properties announced the closing of the sale of Hoffler Place in Charleston, SC, as part of its strategy to exit the student housing market.

What is the significance of the sale of Hoffler Place for Armada Hoffler Properties?

The sale of Hoffler Place is significant as it provides capital for future growth opportunities, allowing the company to focus on conventional apartment communities.

How many units does Hoffler Place have and what was its occupancy rate at sale?

Hoffler Place has 74 apartment units and was 97% occupied at the time of sale.

What are the company's future plans after the sale of Hoffler Place?

Following the sale of Hoffler Place, Armada Hoffler Properties plans to focus on developing and acquiring conventional multifamily and mixed-use properties.

What is the expected outcome of the pending sale of Summit Place?

The pending sale of Summit Place is anticipated to close by the end of April 2022, completing the company's strategic exit from the student housing sector.