Armada Hoffler Buys Two Maryland Retail Centers for $20M
- Apr 23, 2015
Armada Hoffler Properties, Inc. is expanding its Maryland portfolio. The Virginia Beach-based real estate company recently closed on the acquisition of two grocery anchored retail centers located in Perry Hall and Hagerstown. The total purchase price was $20.2 million.
Perry Hall Marketplace and Stone House Square add over 185,000 square feet of retail space to Armada Hoffler’s portfolio. At the time of the sale, the two properties had a combined occupancy of approximately 90 percent. Perry Hall Marketplace, with 74,000 square feet of space, is anchored by Safeway, while the 112,000-square-foot Stone House Square is anchored by Weis Markets and shadow-anchored by a Lowe’s Home Improvement Store.
Armada Hoffler said that, in order to finance the acquisition of the two properties, it used $15.2 million of proceeds from the sale of the Sentara New Town Medical Office Building, in Williamsburg, Va. The company also used 415,500 shares of common stock.
In its 2015 retail market outlook, Marcus & Millichap said that investors will turn their eyes towards Baltimore this year, attracted by the region’s solid employment and by the better yields, compared to other nearby markets. Retail vacancies are expected to drop to 4.4 percent this year, with average rents rising by 3.8 percent, to $19.34 per square foot.
Charts courtesy of Marcus & Millichap.