AH Realty Trust, formerly Armada Hoffler, has made a significant step toward executing its restructuring plan by divesting in the majority of its multifamily assets. It has entered into a collaborative agreement to sell an 11-property multifamily portfolio for $562 million to an affiliate of Harbor Group International (HGI). HGI has provided a $15 million nonrefundable deposit, with the transaction not contingent on financing. The transaction is expected to close in mid-2026.
The portfolio comprises 2,436 units across the Mid-Atlantic and Southeast, including Georgia, Maryland, North Carolina, and Virginia. These assets represent the entirety of AH Realty Trust’s multifamily portfolio, except for Smith’s Landing in Blacksburg, Virginia, which it will retain, and The Everly and Solis Gainesville in Gainesville, Florida, which it intends to market for sale.
“This binding agreement represents a major milestone in our transformation,” said Shawn Tibbetts, chairman, president, and CEO of AH Realty Trust. “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 realize that value, strengthen our balance sheet, and advance our focus toward a simpler real estate platform.”
Sales proceeds will be directed toward debt reduction. According to Tibbetts, the sale is a critical component in AH Realty Trust’s plan to strengthen its balance sheet, reduce complexity, and focus its resources on the retail and office sectors where it believes it can create the most value.
Both organizations are based in Virginia’s Hampton Roads, with a shared history in the region and a commitment to disciplined growth and long-term value creation. The agreement also furthers HGI’s long-term objectives.
“We are pleased to work with AHF Realty Trust, a fellow Hampton Roads institution on this transaction,” said T. Richard Litton Jr., president of HGI. “We expect the acquisition of these high-quality multifamily properties to further enhance our growing portfolio.”
Last year, HGI ranked No. 21 on the National Multifamily Housing Council’s top 50 owners with nearly 53,000 units. It had an active year, completing $2.55 billion in acquisitions. This included a five-property portfolio with 2,719 units in New England from Apartment Investment and Management Co. for $740 million and an 11-property portfolio with 3,590 units in the Sun Belt from a joint venture for $625 million.