VIRGINIA BEACH, Va.--(BUSINESS WIRE)--Armada Hoffler Properties, Inc. (NYSE: AHH) announced today that the Company has teamed with Spandrel Development Partners to develop and build $100 million of new purpose-built student apartments in downtown Charleston, South Carolina. The Company will serve as both majority partner and general contractor in the new joint venture.
The Charleston peninsula is home to over 20,000 students and current enrollment at the College of Charleston alone approaches 12,000 students. With two assets featuring a variety of amenities and price points, the Company expects to deliver over 600 new beds within one mile of the College of Charleston in time for the fall 2019 semester. With these two projects, Armada Hoffler Properties will be the largest private developer of student apartments in Charleston. The Company expects to break ground later this year.
“With its high barrier-to-entry and net market deficit of over 5,000 beds, new student housing product in downtown Charleston fits perfectly into our development and investment strategy,” said Louis S. Haddad, President and Chief Executive Officer. “We look forward to meeting the needs of the underserved student population on the peninsula and are excited to once again team with a partner who has the local expertise to quickly entitle prime sites in one of our target markets.”
The Company had included these as predevelopment projects in its previously issued 2017 guidance presentation and, therefore, any incremental impact on 2017 results is expected to be nominal.
About Armada Hoffler Properties, Inc.
Armada Hoffler Properties, Inc. is a full service real estate company with extensive experience developing, building, owning and managing high-quality, institutional-grade office, retail and multifamily properties in attractive markets throughout the Mid-Atlantic and Southeastern United States. The Company has elected to be taxed as a real estate investment trust (REIT) for U.S. federal income tax purposes.
About Spandrel Development Partners
Spandrel Development Partners is a multi-disciplined equity real estate development firm. Based upon proprietary analysis, the Company pursues opportunities for conversion, capital improvement and ground-up development in targeted U.S. markets with strong and growing economic and demographic indicators. Currently focused on the multifamily, student, hospitality, industrial and retail market segments, Spandrel leverages its principals’ decades of development and investment experience on the creation of long term value.
Certain matters within this press release 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 statement. 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, 2016, and other documents filed by the Company with the Securities and Exchange Commission.