HGI To Buy Nearly All Of AH Realty's Multifamily Properties For $562M
AH Realty Trust, the REIT formerly known as Armada Hoffler, is selling 11 multifamily properties to Harbor Group International as it significantly narrows its business model.
Virginia-based AH Realty is finalizing a deal to sell 11 assets from its 14-property multifamily portfolio as it eliminates that segment of its business to focus on retail and office investments, part of a plan announced last month.
HGI will pay $562M for the 11 properties, with the transaction expected to close in mid-2026. HGI, which is also based out of Virginia, and its affiliates control a $21B investment portfolio with 62,000 apartment units in the U.S.
AH Realty plans to market its two remaining Georgia multifamily properties for sale and retain its Smith’s Landing Apartments in Blacksburg, Virginia.
“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,” AH Realty Trust CEO Shawn Tibbetts said in a statement. “This transaction allows us to realize that value, strengthen our balance sheet, and advance our focus toward a simpler real estate platform.”
Tibbetts took over the REIT at the start of 2025 as it underwent a strategic reevaluation. AH Realty is also selling its construction business and real estate financing operations.
AH's portfolio also comprises dozens of retail properties, several office properties and three mixed-use properties, including The Interlock in Atlanta, a complex with 203K SF of office space, 108K SF of retail space, 349 apartment units, 41 single-family townhomes and a 161-room hotel.
Armada Hoffler had $1.5B of total debt outstanding at the end of last year. The multifamily sales proceeds will go toward debt reduction, aligning with the company’s target debt load of 5.5 to 6.5 times its annual operating income.
Tibbetts has said reducing leverage and narrowing the REIT's focus to retail and office will help it achieve more predictable earnings and sustainable cash flow.
“The days of being a sprawling, complex octopus are behind us,” Tibbetts said during a February earnings call. “We're a new company with a sharper strategy, a stronger team, and a more accountable operating model.”
