Armada Hoffler Adds to Hometown Footprint
- Jul 13, 2015
By Adrian Maties, Associate Editor
Armada Hoffler Properties Inc. has added another retail center to its hometown portfolio. The Virginia Beach-based company announced Monday morning that it has acquired Columbus Village, a 65,000-square-foot retail center located on five acres adjacent to the Town Center of Virginia Beach.
Anchored by Barnes & Noble, Columbus Village also counts ULTA Beauty, Five Below, f.y.e., and LensCrafters among its tenants. Eventually, Columbus Village might become part of the “Town Center environment,” according to its new owner.
“The opportunity to acquire and control additional income producing real estate contiguous to Town Center will allow us to expand on the success of our flagship asset through additional development in the future,” Louis Haddad, CEO of Armada Hoffler, said in a statement. “The fully leased center enjoys strong cash flow and is a positive addition to both our portfolio and future growth.”
Armada Hoffler purchased the property for slightly less than 1.3 million operating partnership units and the assumption of $8.8 million of debt. Of those partnership units, 1 million will earn or accumulate no distributions for 24 months, while the remaining 275,000 units will earn or accumulate no distributions for 30 months.
Armada Hoffler said in a statement that the interim distributions that would have been paid on those units at the current dividend rate amount to approximately $1.8 million. They will positively impact the company’s dividend payout ratio over the next three years.