Armada Hoffler Properties Invests $42M in Annapolis Junction Town Center
- Apr 25, 2016
Virginia Beach, Va.—Armada Hoffler Properties Inc. will invest $42 million in the multifamily component of Annapolis Junction Town Center, a $102 million mixed-use, multi-asset development scheduled to break ground by the end of June. The project spans across 18 acres and will feature 17,000 square feet of retail space, a 150-key hotel, 100,000 square feet of office space, as well as a 416-unit residential community.
The Virginia Beach-based real estate company saw potential in the strategically-positioned project set for completion in the first quarter of 2018. “The Residences at Annapolis Junction Town Center is strategically located in close proximity to key government installations and private-sector employers and is therefore well positioned to serve professionals seeking new housing opportunities within affluent Howard County, where the median household income exceeds $100,000”, said Louis Haddad, CEO at Armada Hoffler Properties.
Annapolis Junction Town Center is located halfway between Baltimore and Washington, close to Fort Meade—Maryland’s largest employer, the nation’s third-largest Army installation and home to both the National Security Agency and the U.S. Cyber Security Command—and a large commercial office space.
Armada Hoffler Properties’s agreement with the developer of the residential community consists in mezzanine financing of $42 million at an annual interest rate of 10 percent which, combined with the proceeds from a senior construction loan and the developer’s equity, will complete the developer’s capital stack. Additionally, a $68 million guaranteed maximum price construction contract was set and the purchase option to acquire an 88 percent interest in the project at the developer’s cost basis, when the construction is completed.
Armada Hoffler Properties Inc. is a full service real estate company with a vast portfolio including retail, office and multifamily projects in Mid-Atlantic US markets.
Image courtesy of Annapolis Junction Town Center