Armada Hoffler Properties Recaptures Two Prime Sites for Redevelopment
October 26 2020 - 6:00AM
Armada Hoffler Properties, Inc. (NYSE: AHH) announced today that it
has reclaimed two prime sites for redevelopment – 3 acres within
the Company’s flagship development, the Town Center of Virginia
Beach and nearly 10 acres adjacent to James Madison University in
Harrisonburg, Virginia. Following the tenant’s default, the Company
terminated its two leases with Regal Cinemas for the freestanding
locations in Virginia Beach and Harrisonburg, the only cinema
leases in Armada Hoffler Properties’ portfolio.
The Town Center of Virginia Beach is Armada Hoffler Properties’
ongoing multi-phased, mixed-use, public-private partnership with
the City of Virginia Beach. The 3-acre parcel formerly occupied by
Regal Cinemas is strategically situated within the 17-block
development in the middle of over one million square feet of
commercial office and retail space, 750 apartment units, 175
residential condos, 400 hotel rooms, 25 restaurants, two performing
arts theaters, and five parking garages offering 4,400 free
spaces.
The Harrisonburg Regal site is located in the heart of the
area’s commercial corridor on University Boulevard within a
half-mile walk of the campus of James Madison University. The
existing 49,000 square foot building sits on nearly 10 acres
currently used primarily for surface parking.
“Our advantage as a diversified, vertically-integrated, and
development-focused firm is our ability to quickly respond to
changing market conditions and identify opportunities in the face
of adversity,” said Louis Haddad, President & CEO of Armada
Hoffler Properties. “We would have been pleased to see these two
leases through to their contractual expirations. However, following
Regal’s default and recent decision to indefinitely suspend all
operations, we regained full control over two prime pieces of real
estate, thereby accelerating our long-term goal of redevelopment.
As we’ve discussed on previous earnings calls, our focus and
specialty is on creative mixed-use development and we envision both
sites to feature a major multifamily component amongst other uses.
We look forward to unlocking the full potential of both properties
and as a result, maximizing value for both their respective
communities and our shareholders.”
About Armada
Hoffler Properties, Inc. Armada
Hoffler Properties, Inc. (NYSE: AHH) is a vertically-integrated,
self-managed real estate investment trust ("REIT") with 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
StatementsCertain 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 statements. When
used, the words "anticipate," "believe," "expect," "intend,"
"may," "might," "plan," "estimate," "project," "should," "will,"
"result," and similar expressions, which do not relate solely
to historical matters, are intended to identify forward-looking
statements. Forwarding-looking statements may include, but are
not limited to, comments relating to the Company’s development
pipeline, the timing of future dividend payments, if any, the
Company’s construction and development businesses, including
backlog, timing of deliveries and estimated costs, and the
Company’s expectations and projections, including estimated
rent collections, the estimated construction segment gross profit
range, projected mezzanine loan interest income and expected
financing activities such as issuances under the Company’s
at-the-market equity offering program. The Company’s
actual future results and trends may differ materially from
expectations depending on a variety of factors discussed in the
Company’s filings with the Securities and Exchange
Commission (the “SEC”). These factors include, without limitation:
(a) the impact of the coronavirus (COVID-19) pandemic on
macroeconomic conditions and economic conditions in the markets in
which the Company operates, including, among others: (i)
disruptions in, or a lack of access to, the capital markets or
disruptions in the Company’s ability to borrow amounts subject
to existing construction loan commitments; (ii) adverse impacts to
the Company’s tenants’ and other third parties’ businesses and
financial condition that adversely affect the ability and
willingness of the Company’s tenants and other third parties
to satisfy their rent and other obligations to the Company,
including deferred rent; (iii) the ability and willingness of
the Company’s tenants to renew their leases with the Company
upon expiration of the leases or to re-lease the Company’s
properties on the same or better terms in the event of
nonrenewal or early termination of existing leases; and (iv)
federal, state and local government initiatives to mitigate
the impact of the COVID-19 pandemic, including additional
restrictions on business activities, shelter-in-place orders
and other restrictions, and the timing and amount of economic
stimulus or other initiatives; (b) the Company’s ability to
continue construction on development and construction projects, in
each case on the timeframes and on terms currently
anticipated; (c) the Company’s ability to accurately assess and
predict the impact of the COVID-19 pandemic on the amount and
timing of rent collections, results of operations, financial
condition, acquisition and disposition activities and growth
opportunities; (d) the Company’s ability to maintain
compliance with the covenants under its existing debt agreements or
to obtain modifications to such covenants from the applicable
lenders; and (e) the information under the heading “Risk Factors”
included in the Company’s Annual Report on Form 10-K for the
year ended December 31, 2019 and in other filings the
Company makes from time to time with the SEC, including
the Company’s Current Report on Form 8-K filed with the SEC on
April 2, 2020.
Contact:Michael P. O’HaraArmada Hoffler
Properties, Inc.Chief Financial Officer, Treasurer, and
SecretaryEmail: MOHara@ArmadaHoffler.com Phone: (757) 366-6684
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