Armada Hoffler Properties to develop two new state office buildings.
Armada Hoffler Properties (AHH) Inc. said Tuesday that it will develop two new administrative buildings for the Commonwealth of Virginia, one in Chesapeake and one in Virginia Beach, for a total of 47,000 square feet. The Southeastern Virginia Training Center will occupy the Chespeake building of 36,000 square feet. The tenant for the 11,000-square-foot building at the beach will be the Department of Corrections for Parole Administration.
“These two new development projects are just the latest examples of the kinds of opportunities in our next generation pipeline,” Louis Haddad, the company’s CEO, said in a statement.
According to AHH, the properties are 100 percent preleased to the state, which signed 12-year leases for both locations. The company expects both projects to be completed by early next year.
AHH, a public real estate investment trust located in Virginia Beach, also announced first quarter earnings Tuesday. It reported funds from operations of $6.5 million, or 20 cents per diluted share, which was slightly above expectations for the company, which went public in May last year. Net income was $2.5 million ,or 8 cents per diluted share
The company said it has 11 properties under development including about 675,000 square feet of office and retail space and 686 multifamily units.
That translates into 165.9 million of new construction contract work, including the Harbor Point project in Baltimore and $193.3 million of backlog work.
Among the company’s newest projects is a 9,000-square-foot store that Anthropologie is opening at Town Center of Virginia Beach in the fourth quarter. Last month, the company announced Lightfoot Marketplace, a shopping center in Williamsburg that will be anchored by a Harris Teeter grocery store on a 20-year lease.
“We are pleased with our solid start to the year. The winter weather had less of an impact on our construction business than we had anticipated and our general and administrative costs were positively impacted largely due to timing,” Haddad said. “We are encouraged by the attractive array of opportunities in our development pipeline and are excited by the volume of leasing activity that we are experiencing not only at Town Center but broadly across our portfolio.”
By the end of the first quarter, the company said its office, retail and multifamily operating property portfolios were 95.4 percent, 93.4 percent and 94.2 percent occupied, respectively.
It also reported outstanding debt of about $317.3 million, including $80 million outstanding on its revolving credit facility.