Large Virginia REIT to partner in $86M Durham tower project

Armada Hoffler Properties and partner to build new office project in Durham
February 25, 2016
Armada Hoffler, Austin Lawrence to Co-Develop $86M Mixed-Use Tower in Durham
February 26, 2016

Large Virginia REIT to partner in $86M Durham tower project

TRIANGLE BUSINESS JOURNAL

The release stated that Armada Hoffler will be a “minority partner” in the project, but did not disclose how much capital it had committed to the building project that’s expected to cost about $87 million to complete.

Greg Hills, founder and managing partner of Austin Lawrence Partners, had stated in an earlier interview with Triangle Business Journal that his company would have a 63 percent ownership share in the partnership with Armada Hoffler keeping a 37 percent ownership share.

Armada Hoffler’s construction division will also be the general contractor for the entire project.

Upon completion of the building project, Armada Hoffler has noted it will exit the joint venture and retain ownership of the office and retail components of the building. Austin Lawrence Partners will retain ownership of the 138 residential condominiums and apartments on the upper levels of the tower, as well as the two-level underground parking garage.

“For years there has been much excitement surrounding the renaissance of Durham’s downtown area,” commented Louis S. Haddad, Armada Hoffler’s chief executive officer, in the news release. “With Duke University as a driving force behind this new project, we are thrilled to be contributing to these efforts by putting both our development and construction expertise to work at One City Center.”

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