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VIRGINIA BEACH, Va., April 26, 2019 (GLOBE NEWSWIRE) -- Armada Hoffler Properties, Inc. (NYSE: AHH) announced today that it has acquired a controlling interest in 1405 Point, the 17-story luxury high-rise apartment building located in the emerging Harbor Point area of the Baltimore waterfront.
Designed to LEED Silver standards, 1405 Point offers 289 apartment units with premium finishes, high-end appliances, and panoramic views of the city or waterfront through floor-to-ceiling windows. Other building amenities include an 11th floor rooftop pool overlooking the Inner Harbor, 24/7 fitness center, resident lounge, and spacious meeting and gathering areas.
“1405 Point is the latest signature, trophy asset that we are proud to add to our portfolio,” said Louis Haddad, President & Chief Executive Officer of Armada Hoffler Properties. “As anticipated, we exercised our at-cost purchase option on the project in the second quarter. Initially as the mezzanine lender and general contractor and now as the majority owner, 1405 Point perfectly illustrates our diversified capabilities – investment, construction, and asset management. From delivery to 98% leased in roughly 12 months, the performance of this project reaffirms our confidence in the entire Harbor Point development and sets the stage for future investment in one of the premier development sites in the Mid-Atlantic.”
Situated between Harbor East and Fell’s Point, Harbor Point is Baltimore’s largest downtown waterfront site currently under development. 1405 Point is strategically located in close proximity to nearly one million square feet of office space including Wills Wharf, which is currently under development and construction by the Company, as well as the Exelon building and Thames Street Wharf, both of which were built by Armada Hoffler Construction Company. Beatty Development Group is the master developer of Harbor Point.
The Company was an initial investor in 1405 Point through its mezzanine loan to Beatty Development Group. The Company acquired a 79% ownership interest in the building in exchange for its mezzanine loan investment and the assumption of existing bank debt. The closing of this transaction during the second quarter had already been assumed in the Company’s outlook and guidance for 2019. The Company holds the option to acquire the remaining ownership interest in 1405 Point.
About Armada Hoffler Properties, Inc.
Armada Hoffler Properties, Inc. (NYSE: 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. Founded in 1979 by Daniel A. Hoffler, the Company has elected to be taxed as a REIT for U.S. federal income tax purposes.
Certain matters within this press release, including with respect to the details of the development 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, 2018, 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, Treasurer, and Secretary
Phone: (757) 366-6684