Armada Hoffler Properties completes acquisition of $170.5 million retail portfolio

Armada Hoffler Properties Inc. said Tuesday that it has completed a previously announced acquisition of a portfolio of 11 retail centers located throughout the Mid-Atlantic and South Central United States for about $170.5 million in cash. The portfolio includes about 1.1 million square feet of space and is 94 percent occupied.

The core of the portfolio – representing approximately 75 percent of the in-place net operating income – consists of six retail centers positioned along the I-85 corridor between Raleigh-Durham, N.C. and Greenville, S.C.

These assets have major anchor tenants including Harris Teeter, PetSmart, T.J. Maxx, Bed Bath & Beyond and Ross Dress for Less.

The remaining five properties in the portfolio are Kroger-anchored retail centers located in Virginia, Tennessee, Indiana and Texas.

The company funded the $170.5 million purchase price with the net proceeds from the sales of the Oceaneering International Building in Chesapeake for $30 million, and the sale of the Williams Mullen office building in downtown Richmond, $78 million, in addition to borrowings under the company’s unsecured revolving credit facility.

“We are pleased to strategically redeploy the capital we realized from our recently completed dispositions into a portfolio of high-quality assets anchored by a diverse group of credit-quality tenants,” Louis Haddad, Armada’s president and CEO, said in a statement.

“Through this portfolio acquisition, we expand our geographic footprint in North and South Carolina. The six retail centers located in the Carolinas fit perfectly into our core operating portfolio and long-term strategy. We continue to evaluate the properties located outside the Carolinas for potential sale in order to generate proceeds between $20 million and $40 million.”