Company to Add $170 Million to Third Party Construction Backlog
VIRGINIA BEACH, Va., Jan. 08, 2019 (GLOBE NEWSWIRE) -- Armada Hoffler Properties, Inc. (AHH) announced today that it has closed on its initial investment in the office, retail, and apartment components of The Interlock, a new mixed-use development in the emerging West Midtown neighborhood of Atlanta. Located at the corner of Howell Mill Road and 14th Street, The Interlock is expected to offer 200,000 square feet of creative office space, 100,000 square feet of retail space, 345 apartment units, and a rooftop view of the city’s skyline, representing approximately $245 million of new development. The commercial office and retail portions of The Interlock are currently 65% pre-leased, including leases with Georgia Tech (50,000 square feet) and WeWork (120,000 square feet). The Interlock also has plans for 70 single-family townhomes and a 140-room boutique hotel, both of which are excluded from the Company’s investment.
The Company has agreed to invest up to $65 million of principal through a mezzanine loan on the commercial office and retail portions of the project being developed by S.J. Collins Enterprises. The Company has also agreed to invest up to $23 million of principal through a mezzanine loan on Solis Interlock, the planned 345-unit apartment community under development by Terwilliger Pappas.
In addition to providing significant development expertise and services to the project, Armada Hoffler Construction Company, a wholly owned subsidiary of the Company, has been engaged to serve as the general contractor for the office, retail, multifamily, and hotel portions of The Interlock. In the aggregate, these guaranteed maximum price contracts will add approximately $170 million to third-party construction backlog. Construction of the project has already commenced with completion scheduled in late 2020.
“The Interlock is the latest in our series of high-profile, mixed-use, public-private partnerships in the Southeast,” said Louis Haddad, President and Chief Executive Officer of Armada Hoffler Properties. “This project showcases almost every aspect of our vertically-integrated business model – investment, development, and construction – resulting in substantial value creation to our shareholders in the form of interest income as well as development and construction fees over the next few years. We look forward to providing additional details about The Interlock during our fourth quarter earnings call next month.”
About Armada Hoffler Properties, Inc.
Armada Hoffler Properties, Inc. (AHH) is a vertically-integrated, self-managed real estate investment trust ("REIT") with four decades of experience developing, building, acquiring, and managing high-quality, institutional-grade office, retail, and multifamily properties located primarily in the Mid-Atlantic and Southeastern United States. In addition to developing and building properties for its own account, the Company also provides development and general contracting construction services to third-party clients. The Company has elected to be taxed as a REIT for U.S. federal income tax purposes.
About S.J. Collins Enterprises
Founded in 2007 by Steve Collins, S.J. Collins Enterprises is a privately-held, commercial real estate and retail development firm that has acquired and developed more than 60 retail, mixed-use, multifamily, and office projects throughout the continental United States. The company is headquartered in Fairburn, Georgia. The S.J. Collins team leads the market in customer service and speed to market. The firm sets a new standard for development in every endeavor.
About Terwilliger Pappas
Terwilliger Pappas’ vision is to develop exceptional communities that are recognized throughout the industry and the communities where they are located. This vision is made possible by an accomplished team that shares a commitment to creating apartments that meet the lifestyle needs of tenants and deliver outstanding performance and value to financial partners.
Certain matters within this press release, including with respect to the details of the development and the scheduled completion date are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statements. For a description of factors that may cause the Company’s actual results or performance to differ from its forward-looking statements, please review the information under the heading “Risk Factors” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, and the other documents filed by the Company with the Securities and Exchange Commission from time to time.
Michael P. O’Hara
Armada Hoffler Properties, Inc.
Chief Financial Officer and Treasurer
Phone: (757) 366-6684