VIRGINIA BEACH, Va., Nov. 02, 2020 (GLOBE NEWSWIRE) -- Armada Hoffler Properties, Inc. (NYSE: AHH) today announced that it has completed the acquisition of The Residences at Annapolis Junction. The Company had previously been a mezzanine lender to the developer of the property. In connection with the transaction, the Company refinanced the property with a 10-year $84 million agency loan that is interest-only for the first three years and bears interest at 2.74% per annum.
The Residences at Annapolis Junction offer 416 luxury apartments and upscale amenities including a theater, pet spa, and resort-style pool. Located within minutes of Fort Meade, the National Security Agency, and BWI Marshall Airport, the community is strategically located in Howard County with convenient access to the Savage MARC Station, Amtrak, and I-295. Armada Hoffler Construction Company completed construction of the LEED Gold-certified property in 2018. The community is currently 97% leased.
“Our previous mezzanine loan on The Residences at Annapolis Junction put us in unique position to acquire full control over the stabilized asset in an off-market and immediately accretive transaction,” said Louis Haddad, President & CEO of Armada Hoffler Properties. “Combined with our recent off-market purchase of the Edison Apartments, our acquisition of Annapolis Junction brings our multifamily portfolio to over 2,300 market-rate units in mostly suburban locations in Virginia, Maryland, and North Carolina. Our geographic focus has and will continue to be on Mid-Atlantic and Southeast markets that we believe will continue to see significant population growth in both the near and long term.”
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.
Certain 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, expected financing activities such as issuances under the Company’s at-the-market equity offering program and the Company’s geographic focus. 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 Quarterly Reports on Form 8-K10-Q filed with the SEC on April 2, 2020 for the quarters ended March 31, 2020 and June 30, 2020.
Michael P. O’Hara
Armada Hoffler Properties, Inc.
Chief Financial Officer, Treasurer, and Secretary
Phone: (757) 366-6684