Armada Hoffler has extensive expertise developing high-quality real estate projects and is opportunistic in its approach to acquisitions and dispositions. New development projects and acquisitions candidates are targeted based on their potential for value creation and evaluated with prudence, keeping in mind the long-term benefit of the Company and our shareholders. The standards we use to evaluate whether to deploy our precious capital on a new project or acquisition have always been, and will continue to be, exceedingly rigorous.
The investment team is actively pursuing acquisition candidates that will enhance the overall value of the portfolio. Its mission is to find high quality real estate that will generate predictable, growing cash flows through long contractual lease duration of credit-quality anchor tenants with a strong likelihood of lease renewal. Assets located in strategic locations within high barrier-to-entry markets with strong demographics are considered prime targets.
The Company’s experience in the Mid-Atlantic and Southeast, combined with its ability to close with proceeds from its credit facility or access to capital markets for larger transactions, result in quick and efficient transactions. In addition, Armada Hoffler can potentially offer tax-deferred transactions to those selling stabilized assets to the Company by taking advantage of its UPREIT structure.
Partners co-developing assets with Armada Hoffler or selling stabilized assets to the Company can take advantage of its UPREIT structure. This structure consists of an operating partnership that is controlled by the publicly-traded real estate investment trust (REIT). Partnership units in the operating partnership are economically equivalent to shares of Armada Hoffler common stock. When utilized by our partners, taking back operating partnership units in lieu of cash can result in tax deferred gains and recapture, liquidity through the convertibility of the units to common stock, increased diversification from our broad portfolio of stabilized assets, and the potential for additional upside from our other development projects and acquisitions.
NOTE: The information contained herein does not constitute, and shall not be considered, an offer to sell, or a solicitation of an offer to purchase, interests in Armada Hoffler’s operating partnership under U.S. securities laws (or U.S. state securities laws) or under the securities laws of any other country.