Armada Hoffler Sells 2 Retail Centers for $82M

Armada Hoffler has sold Nexton Square in Summerville, S.C., and Market at The Mill Creek in Mount Pleasant, S.C., both retail assets in the Charleston area, for $82 million.

The blended cap rate was in the low 6 percent range, for a profit margin of more than 20 percent above the initial development costs, according to the company. The dispositions enabled Armada to repay the Nexton Square mortgage and gain nearly $60 million in cash.

Armada had purchased Nexton Square from RealtyLink for $18.5 million back in 2020, according to CommercialEdge data.

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Armada owns and manages a diverse portfolio of multifamily, office and retail assets across the Mid-Atlantic and Southeastern U.S. In one of its larger moves, in March 2023, the company paid $215 million for the office and retail components of The Interlock’s Phase One, a 9-acre, mixed-use development in Atlanta’s West Midtown submarket. 

A closer look

Completed in 2020, the 133,608-square-foot Nexton Square encompasses 13 buildings on some 16 acres. The open-air lifestyle center includes a mix of regional and national retailers including Fuji Sushi, Wok N Roll, Wild Birds Unlimited, Summerhouse Furniture, Sportsbook, Bold Fitness and Brighton Animal Hospital, among others.

Located at 101 Nexton Square Drive, the property is within Charleston’s Berkeley County submarket. Nexton Square serves more than 10,000 single-family and multifamily units, according to Armada, due to its location near a 4,500-acre master-planned community.

Anchored by a 50,000-square-foot Lowes Foods, the nearly 80,000-square-foot Market at Mill Creek came online in 2018. The tenant roster at the property also includes Starbucks, Fuji Sushi, Marco’s Pizza, Supercuts, Sea Island Urgent Care and Agaves Cantina.

The three-building property on some 12 acres is at 2100 Highway 41, in Mount Pleasant’s north area. According to InvenTrust Properties, Market at Mill Creek serves a population of more than 57,000 within a 5-mile radius, with the average household income at almost $180,000.