Armada Hoffler Properties Snaps Up Shopping Center in Colonial Heights, Va.
- May 06, 2016
By Bogdan Odagescu, Associate Editor
Richmond, Va.—Armada Hoffler Properties recently closed on the acquisition of Southgate Square in Colonial Heights, Va., a 220,000-square-foot retail center located approximately 23 miles south of downtown Richmond.
The company acquired 100 percent of the property’s interests for a price tag of $21.1 million of debt and the issuance of little over 1.5 million units of limited partnership interest in the company’s operating partnership. The shopping center was 100 percent occupied at the time of purchase.
A recently opened Burlington, operating on a 15-year lease, is Southgate Square’s current anchor. The tenant roster also includes Staples, Michaels, Sleepy’s, PetSmart, Jo-Ann Fabric and Craft Stores.
The shopping center sits in a very dense retail area along the I-95, being located across the street from another Armada Hoffler Properties asset, the 100,000-square-foot Target-anchored Dimmock Square, and adjacent to the 900,000-square-foot Southpark Mall. Other properties in the area include a Walmart Supercenter, Verizon store, Hilton Garden Inn, Hampton Inn, Holiday Inn, American Family Fitness and a Home Depot.
“Southgate Square is a strategic addition to our portfolio as it allows us to expand our current footprint in one of our target markets,“ Louis Haddad, CEO of Armada Hoffler Properties, said in prepared remarks. “We are also pleased that the success of the previous operating partnership unit transaction with this property owner has led to yet another meaningful equity position in our company.”
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