Armada Hoffler Properties Closes on its Anticipated Investment in the Interlock in West Midtown Atlanta
January 08, 2019 at 11:00 am
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Armada Hoffler Properties, Inc. announced 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.
Armada Hoffler Properties, Inc. is a vertically integrated, self-managed real estate investment trust (REIT). The Company is engaged in developing, building, acquiring, and managing office, retail and multifamily properties located primarily in the Mid-Atlantic & Southeastern United States. The Company operates through five segments: office real estate, retail real estate, multifamily real estate, general contracting & real estate services, and real estate financing. The Company's general contracting, and real estate services business develops and builds properties for its own account and provides construction and development services to both related and third parties. The real estate financing segment includes the Company's mezzanine loans and preferred equity investments on development projects. The Company also provides general construction and development services to third-party clients, in addition to developing and building properties to be placed in their stabilized portfolio.