Armada Hoffler to Acquire Two Retail Centers in Virginia Beach for $105M
VIRGINIA BEACH, VA. — Armada Hoffler will acquire Red Mill Commons and Marketplace at Hilltop in Virginia Beach for a combined $105 million from local retail developer Venture Realty Group. As part of the acquisition, Armada Hoffler will exchange 4.1 million operating partnership units each valued at $15.55, as well as the assumption of $36 million in debt and $5 million in cash. Red Mill Commons is a 374,000-square-foot retail center that was 98 percent leased at the time of sale to more than 90 tenants, including T.J. Maxx, HomeGoods, Dollar Tree, Outback Steakhouse, Walgreens, Panera Bread, Buffalo Wild Wings, Starbucks Coffee and Chipotle Mexican Grill. Walmart, Target and The Home Depot shadow anchor the property, which is located five miles from both Sandbridge Beach and Naval Station Oceana, the second largest employer in the city. Marketplace at Hilltop is a 118,000-square-foot center that features tenants such as Total Wine, Michaels, Panera Bread, Chick-fil-A and Arby’s. The shopping center is 100 percent occupied and adjacent to the only Whole Foods Market in the city. Venture Realty Group has been retained to lease and manage both properties. Armada Hoffler expects both deals to close this quarter.