Armada Hoffler Sells Newly Built Multifamily Property in Durham for $35.6M

Armada Hoffler Properties is selling the Whetstone Apartments community in Durham for $35.6 million to an undisclosed buyer.

by Adriana Pop, Associate Editor

Armada Hoffler Properties is selling the Whetstone Apartments community in Durham for $35.6 million to an undisclosed buyer.

The 203-unit apartment complex at 501 Willard St. is situated in the city’s downtown area near Duke University. The company delivered the property’s first units in the third quarter of 2014.

The community offers a mix of studio, one- and two- bedroom apartments with monthly rents ranging from $1,040 to $1,600. Amenities include a resort-style swimming pool, a garden courtyard with fireplace, a fitness center, an entertaining community room, elevator access to all floors, as well as covered parking and controlled access. Leasing and management duties are being provided by Grubb Properties.

According to Lou Haddad, president and CEO of Armada Hoffler, the company expects to record a profit of more than 20 percent from the disposition of the property, despite the fact that the asset is still in lease-up phase.

“We are delighted to continue our long-standing strategy of selling non-core assets from time to time and monetizing the wholesale-to-retail spread on our development projects,” Lou Haddad added. “Whetstone is our third disposition in six months and we will redeploy the capital in a way that best creates value for our shareholders.”

The transaction will be completed in the second quarter of 2015 and is subject to the satisfaction of certain closing conditions.

Photo credits: whetstoneapartments.com