Virginia Beach, VA-based Armada Hoffler has disposed of two single-tenant assets leased to Costco and Home Depot located in Durham, NC for $24 million.

Jason Maier of Stan Johnson Company represented the buyer, buyer, a New York-based private investor, in the 1031 exchange.

According to the Armada Hoffler, the 4.0% exit capitalization rate represents a substantial improvement over the its 4.5% goal.

“Despite recent market volatility, investor demand for high credit, single-tenant, net leased assets with longer lease terms remains strong,” said Lou Haddad, president and CEO of Armada Hoffler. “After securing early long-term lease extensions with both tenants, we capitalized on this demand and successfully transacted at a price that far exceeded our expectations.”