AH Realty Trust closes $485M apartment sale to pay down debt

AH Realty Trust (NYSE:AHRT) completed the sale of nine multifamily properties to affiliates of Harbor Group International for a gross transaction price of $485 million, advancing its long-term strategic pivot away from residential real estate.

The Virginia Beach-based real estate investment trust (REIT) utilized approximately $465 million of the total transaction proceeds to immediately pay down outstanding balance sheet debt.

The aggressive debt reduction is part of management's targeted effort to streamline operations and fortify its broader liquidity position amid changing real estate market conditions.

The transaction represents the core of a larger, 11-asset residential portfolio divestiture originally negotiated between the two firms earlier this year.

By offloading these apartment complexes, the company—formerly known as Armada Hoffler before its recent corporate rebranding—is executing a deliberate capital recycling program to completely exit the multifamily property sector.

The remaining two properties included in the initial portfolio agreement, Greenside and Premier, are currently locked under binding purchase contracts with Harbor Group affiliates for a combined value of $77 million.

Financial planners anticipate closing the $50 million sale of the Greenside property by the end of 2026, while the final $27 million disposition of the Premier asset is scheduled to conclude by mid-2027.