The Interlock. Picture courtesy of CommercialEdge
Armada Hoffler has expanded its presence within the Atlanta space. In an off-market transaction, the corporate paid $215 million for the workplace and retail parts of The Interlock’s Section One, a 9-acre, mixed-use growth in West Midtown, to SJC Ventures.
Anticipated to shut in the course of the second quarter of 2023, the deal concerned $100 million in fixed-rate financing and the conversion of Armada Hoffler’s present mezzanine mortgage into fairness, in addition to the issuance of restricted partnership curiosity items to the sponsor developer.
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The Interlock acquisition resembles one other Armada Hoffler buy. In December 2021, the corporate paid $246 million for almost all stake in a 23-story mixed-use property in Baltimore. The corporate’s funding within the Exelon constructing was consistent with its technique of specializing in buying prime mixed-use actual property belongings.
An Atlanta mixed-use growth
The primary part of The Interlock got here on-line in 2021 at 1115 Howell Mill Street NW, with Armada Hoffler serving as its common contractor. The $750 million venture contains 311,000 sq. ft of workplace and retail house and a 835-space storage, in addition to residential house and a resort. The property additionally incorporates a 38,000-square-foot rooftop space that’s residence to a full-service restaurant, indoor bar, outside bar, occasion pavilion and a 1,200-square-foot resort-style pool.
The business house was 89 % leased on the time of sale, with one other six % below lease. The roster contains Georgia Tech and WeWork, but additionally the nation’s first Puttshack, amongst others.
SJC continues to be engaged on the venture’s 275,000-square-foot Section Two, slated to embody 186,000 sq. ft of workplace house, 92,000 sq. ft of retail house (together with a 42,000-square-foot Publix grocery retailer) and a 682-bed scholar housing tower. Completion is anticipated subsequent yr.
For Armada Hoffler, The Interlock acquisition considerably expands its Atlanta-area footprint. The agency’s native portfolio additionally contains the 223-unit Gainesville Flats and Southern Put up, a 4.3-acre mixed-use growth remodeling the previous website of Roswell Plaza right into a live-work-play vacation spot.
