AH Realty Trust took a major step in its strategic pivot to retail and office assets, closing the sale of nine multifamily properties for $485 million to affiliates of Harbor Group International.
"Completing the sale of these properties marks another significant step in our transformation as we continue to sharpen our focus on our high-quality retail and mixed-use office portfolio,” said Shawn Tibbetts, Chairman, President and Chief Executive Officer of AH Realty Trust. “We received an attractive valuation for these properties, and the proceeds will allow us to accelerate our deleveraging and strengthen our balance sheet."
The transaction will see approximately $465 million of the proceeds used for debt reduction. Two other multifamily properties, Greenside and Premier, are still under contract to be sold to HGI affiliates for a combined $77 million. The company anticipates the $50 million sale of Greenside will close by the end of 2026 and the $27 million sale of Premier by mid-2027.
The sale accelerates the company's progress toward its long-term leverage target of 5.5x to 6.5x net debt to total adjusted EBITDA. By shedding most of its multifamily assets, AHRT is focusing its portfolio on what it deems its core high-quality retail and office properties, primarily in the Mid-Atlantic and Southeastern U.S.
The company, formerly known as Armada Hoffler, is also actively marketing two other properties, The Everly and Solis Gainesville, for sale. It intends to retain ownership of one multifamily asset, Smith’s Landing.
This article is for informational purposes only and does not constitute investment advice.
