Armada Hoffler Properties Inc. closes on retail center in Virginia Beach
Armada Hoffler Properties Inc. said Monday that it has closed on the acquisition of Columbus Village, a 65,000-square-foot retail center in Virginia Beach. It sits on five acres adjacent to the Town Center of Virginia Beach.
According to Armada Hoffler, the site is a prime target for redevelopment and integration into the Town Center, an Armada project and also the location of its headquarters.
“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, Armada’s CEO said in a statement. “The fully leased center enjoys strong cash flow and is a positive addition to both our portfolio and future growth.”
Columbus Village is anchored by Barnes & Noble and other tenants including ULTA Beauty, Five Below, and LensCrafters.
The company said it acquired the property for 1.28 operating partnership units and the assumption of $8.8 million of debt. Of the equity that will be issued in this transaction, 1 million units will not earn or accrue distributions for 24 months and 275,000 units will not earn or accrue distributions for 30 months.
The interim distributions that would have been paid on these operating partnership units at the current dividend rate – approximately $1.8 million – will positively impact the company’s dividend payout ratio over the next three years.