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Armada Hoffler prepares to go public as real estate investment trust

Updated: March 28, 2013 - 3:40 pm

Posted: March 28, 2013

By Lydia Wheeler
lydia.wheeler@insidebiz.com

Virginia Beach-based developer Armada Hoffler is taking the company public and plans to raise up to $201.3 million in its initial public offering.

Armada Hoffler Properties Inc. filed paperwork with the federal Securities and Exchange Commission on Tuesday, March 26., announcing its plan to qualify as a real estate investment trust and list common stock on the New York Stock Exchange under the symbol “AHH.”

Listed in the initial company portfolio are seven office properties consisting of approximately 1 million square feet that were 94.1 percent leased as of Dec. 31; 15 retail properties consisting of approximately 1.1 million square feet that were 93.9 percent leased; and two multi-family properties consisting of 626 apartment units that were approximately 94.9 percent leased.

The S-11 filing does not give an expected price per share or say how many shares the company expects to sell. Though the corporation plans to pay regular quarterly dividends to its shareholders, the filing does not reveal an expected dividend amount of rate either.

The form does, however, announce the company’s plan to purchase the Apprentice School Apartments – 197 multifamily units in Newport News, which are under construction and expected to be completed in November 2013.

Properties in the pipeline to add to the portfolio in the future account for an additional 290,000 square feet of office space, 90,000 square feet of retail space and 491 apartments units. The properties include the Main Street Office building and the Main Street Apartments in Virginia Beach, Jackson Street Apartments in Durham, N.C., Sandbridge Commons shopping center in Virginia Beach, the Brooks Crossing Office building in Newport News and Greentree Shopping Center in Chesapeake.

Armada Hoffler Properties Inc. is listed as a Maryland corporation that formed in October 2012 as successor of Virginia Beach-based Armada Hoffler, which was founded by Dan Hoffler in 1979. The commercial real estate developer is responsible for Town Center in Virginia Beach as well as the Newport News Marriott Hotel & Conference Center, the Norfolk Waterside Marriott and the Renaissance Portsmouth Hotel and Waterfront Conference Center.

“We will conduct our business through a traditional umbrella partnership real estate investment trust, or UPREIT, structure in which our properties are owned by our operating partnership directly or through limited partnerships, limited liability companies or other subsidiaries,” the filing states.