REIT acquires RedMill Commons &Marketplace at Hilltop fromVenture RealtyGroup Armada Hoffler buys two Virginia retail centers for $105 million
ISSUE HIGHLIGHTS Volume 31, Issue 12 June 28 - July 11, 2019
IRGINIA BEACH, V A — A r m a d a Hoffler Properties has expanded its retail real estate footprint in its home- town of Virginia Beach, by nearly 500,000 s/f with the recent closing of an off-market transaction. The REIT ac- quired Red Mill Commons and Marketplace at Hilltop from Venture Realty Group in a $105 million deal. Armada financed part of the acquisition with $5 million in cash and the assumption of $36 million of existing mortgage debt. The bulk of the payment, however, came in the form of the issuing of 4.1 million oper- ating partnership units valued at $15.55 each, providing Ven- ture Realty with significant equity ownership in Armada. Venture Realty will continue to provide property manage- ment and leasing services at the retail centers. Red Mill and Hilltop, de- veloped in the early 2000s on sites that had been home to farmland and a trailer park, respectively, are located less than 10 miles apart in high barrier-to-entry submarkets. A 374,000 s/f property, Red Mill V
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Red Mill Commons
many store closure announce- ments throughout Hampton Roads, there is an increasing number of stores opening and expanding, including national eateries, fitness chains and entertainment tenants. At the close of the first quar- ter, Armada Hoffler’s retail holdings in Virginia Beach con- sisted of 12 assets, including Columbus Village II, a 92,000 s/f retail and entertainment center that the REIT pur- chased in late 2016. The major- ity of the company’s portfolio, which consists of office, retail and multifamily properties across the Mid-Atlantic and Southeastern U.S., is located in the State of Virginia.
is 97% occupied and home to a host of national chains includ- ing T.J. Maxx, Dollar Tree, Walgreens and three shadow anchors. Hilltop encompasses 118,000 s/f and a 100% full tenant roster featuring retail- ers such as Total Wine and Michaels. The Virginia Beach shopping centers appear to be a long- term hold for Armada. During the REIT’s first quarter earn- ings conference call on May 2, 2019, Louis Haddad, president & CEO of Armada Hoffler Properties, reiterated that well-located, high-volume retail assets will remain a significant part of the company’s growth, adding that expectations are for
Red Mill and Hilltop to gener- ate significant net operating income for many years into the future. Market Strength The Virginia Beach retail sector is faring relatively well. The market recorded a vacancy rate of 5.2% in the first quarter of 2019, according to a report by Cushman & Wakefield | Thalhimer, compared to the U.S. average of 6.4%. And despite the concerns pervad- ing the national retail sector across the board, including store e-commerce competition, the future bodes well for Vir- ginia Beach and the Hampton Roads area in general. Per the report, while there have been
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NorthMarq’s Ranieri arranges $44.426M refinance of Little Ferry, New Jersey multifamily portfolio
LITTLE FERRY, NJ — Robert Ranieri, senior VP/man- aging director of NorthMarq’s White Plains-based regional office arranged the $44.426
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interest only followed by 30- year amortization schedules. NorthMarq arranged financing for the borrower through its relationship with Freddie Mac. “This was the fourth time we have refinanced this portfolio with Freddie Mac. We continue to increase the loan proceeds Gilbert Manor & North Village
million refinance of a multifam- ily portfolio consisting of three properties: Gilbert Manor, North Village I and North Vil- lage II. The three properties contain a combined 516 units. The permanent-fixed rate loans were structured with 7-year terms with 2-years of
and reduce the borrower’s in- terest costs,” said Ranieri. As a capital markets leader, NorthMarq offers commercial real estate investors access to experts in debt, equity, invest- ment sales, and loan servicing to protect and add value to their assets.
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