AH Realty Trust is selling 11 US multifamily assets to Harbor Group International for $562m as part of a plan to reduce leverage and shift focus on retail and office properties.
AH Realty said the 11 multifamily assets being sold represent the entirety of the company’s multifamily portfolio, except for Smith’s Landing, which the firm will retain, and the Everly and Solis Gainesville, both of which the company intends to put up for sale.
The company said it is also in talks to sell two of its real estate financing investments for aggregate proceeds of approximately $63m.
Last month, NYSE-listed Armada Hoffler, relaunched as AH Realty Trust, and said it had entered into a letter of intent with a global real estate investment management firm for the potential sale of 11 of the 14 multifamily assets in its portfolio.
At the time, the company said proceeds from these capital recycling initiatives would be used to reduce debt and streamline operations, allowing it to focus primarily on high-performing retail and office assets.
AH Realty said the agreement with Harbor Group formalises the letter of intent previously disclosed, and represents a significant step toward simplifying AH Realty Trust’s platform, reducing leverage and reallocating capital toward its operating strategy.
Shawn Tibbetts, chairman, president and CEO of AH Realty Trust, said: “This binding agreement represents a major milestone in our transformation. It reflects the deliberate, strategic actions we are taking to simplify the company, sharpen our focus and above all unlock value for our shareholders.
“These multifamily assets are high‑quality properties that have performed exceptionally well, yet their intrinsic value was not reflected in the public market’s share price valuation. This transaction allows us to realise that value, strengthen our balance sheet and advance our focus toward a simpler real estate platform.”
Tibbetts added that the sale was a “critical component of our plan to strengthen our balance sheet, reduce complexity and concentrate our resources on the retail and office sectors where we can create the most value”.
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