Armada Hoffler Properties (AHH) 10-Q 2 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 01, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	Armada Hoffler Properties, Inc.
Entity Central Index Key	1,569,187
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		44,932,241

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Real estate investments:
Income producing property	$ 900,782	$ 894,078
Held for development	680	680
Construction in progress	39,361	13,529
Gross real estate investments	940,823	908,287
Accumulated depreciation	(152,438)	(139,553)
Net real estate investments	788,385	768,734
Cash and cash equivalents	18,587	21,942
Restricted cash	3,139	3,251
Accounts receivable, net	15,027	15,052
Notes receivable	73,382	59,546
Construction receivables, including retentions	45,820	39,433
Construction contract costs and estimated earnings in excess of billings	53	110
Equity method investments	10,950	10,235
Other assets	58,995	64,165
Total Assets	1,014,338	982,468
LIABILITIES AND EQUITY
Indebtedness, net	465,291	522,180
Accounts payable and accrued liabilities	9,311	10,804
Construction payables, including retentions	58,546	51,130
Billings in excess of construction contract costs and estimated earnings	6,780	10,167
Other liabilities	39,889	39,209
Total Liabilities	579,817	633,490
Redeemable noncontrolling interest	2,000	0
Stockholders’ equity:
Preferred stock, $0.01 par value, 100,000,000 shares authorized, none issued and outstanding as of June 30, 2017 and December 31, 2016	0	0
Common stock, $0.01 par value, 500,000,000 shares authorized, 44,932,241 and 37,490,361 shares issued and outstanding as of June 30, 2017 and December 31, 2016, respectively	449	374
Additional paid-in capital	288,162	197,114
Distributions in excess of earnings	(55,709)	(49,345)
Total stockholders’ equity	232,902	148,143
Noncontrolling interests	199,619	200,835
Total Equity	432,521	348,978
Total Liabilities and Equity	$ 1,014,338	$ 982,468

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, shares issued (in shares)	44,932,241	37,490,361
Common stock, shares outstanding (in shares)	44,932,241	37,490,361

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenues
Rental revenues	$ 26,755	$ 24,251	$ 53,987	$ 47,534
General contracting and real estate services revenues	56,671	33,200	120,190	70,003
Total revenues	83,426	57,451	174,177	117,537
Expenses
Rental expenses	6,171	5,071	12,239	10,400
Real estate taxes	2,595	2,382	5,104	4,731
General contracting and real estate services expenses	54,015	32,025	115,211	67,062
Depreciation and amortization	9,304	8,602	18,779	16,751
General and administrative expenses	2,678	2,224	5,664	4,708
Acquisition, development and other pursuit costs	369	437	416	1,141
Impairment charges	27	0	31	35
Total expenses	75,159	50,741	157,444	104,828
Operating income	8,267	6,710	16,733	12,709
Interest income	1,658	722	3,056	904
Interest expense	(4,494)	(3,978)	(9,029)	(7,769)
Gain on real estate dispositions	0	13	3,395	26,687
Change in fair value of interest rate derivatives	(81)	(373)	213	(2,762)
Other income	43	43	80	119
Income before taxes	5,393	3,137	14,448	29,888
Income tax provision	(450)	(6)	(752)	(224)
Net income	4,943	3,131	13,696	29,664
Net income attributable to noncontrolling interests	(1,472)	(1,097)	(4,289)	(10,260)
Net income attributable to stockholders	$ 3,471	$ 2,034	$ 9,407	$ 19,404
Net income attributable to stockholders per share (basic and diluted) (in dollars per share)	$ 0.08	$ 0.06	$ 0.24	$ 0.62
Weighted-average common shares outstanding (basic and diluted) (in shares)	42,091	31,736	39,869	30,964
Dividends and distributions declared per common share and unit (in dollars per share)	$ 0.19	$ 0.18	$ 0.38	$ 0.36

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Equity - 6 months ended Jun. 30, 2017 - USD ($) $ in Thousands	Total	Common Stock	Additional paid-in capital	Distributions in excess of earnings	Total stockholders' equity	Noncontrolling interests
Beginning balance (in shares) at Dec. 31, 2016	37,490,361	37,490,361
Beginning balance at Dec. 31, 2016	$ 348,978	$ 374	$ 197,114	$ (49,345)	$ 148,143	$ 200,835
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	13,696			9,407	9,407	4,289
Net proceeds from sale of common stock (in shares)		7,350,690
Net proceeds from sales of common stock	91,381	$ 74	91,307		91,381
Restricted stock awards (in shares)		112,097
Restricted stock awards	1,059	$ 1	1,058		1,059
Restricted stock award forfeitures (in shares)		(20,907)
Restricted stock award forfeitures	(289)		(289)		(289)
Acquisitions of noncontrolling interests in real estate investments	(5)		(987)		(987)	982
Redemption of operating partnership units	(229)		(41)		(41)	(188)
Dividends and distributions declared	$ (22,070)			(15,771)	(15,771)	(6,299)
Ending balance, shares (in shares) at Jun. 30, 2017	44,932,241	44,932,241
Ending balance at Jun. 30, 2017	$ 432,521	$ 449	$ 288,162	$ (55,709)	$ 232,902	$ 199,619

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
OPERATING ACTIVITIES
Net income	$ 13,696	$ 29,664
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of buildings and tenant improvements	12,930	11,105
Amortization of leasing costs and in-place lease intangibles	5,849	5,646
Accrued straight-line rental revenue	(640)	(448)
Amortization of leasing incentives and above or below-market rents	(90)	(49)
Accrued straight-line ground rent expense	273	132
Bad debt expense	166	95
Noncash stock compensation	832	652
Impairment charges	31	35
Noncash interest expense	560	475
Gain on real estate dispositions	(3,395)	(26,687)
Change in the fair value of derivatives	(213)	2,762
Changes in operating assets and liabilities:
Property assets	(861)	(2,019)
Property liabilities	(2,778)	(1,543)
Construction assets	(6,495)	3,264
Construction liabilities	21	(4,136)
Net cash provided by operating activities	19,886	18,948
INVESTING ACTIVITIES
Development of real estate investments	(14,997)	(32,669)
Tenant and building improvements	(4,338)	(2,875)
Acquisitions of real estate investments, net of cash received	(6,767)	(164,978)
Dispositions of real estate investments	4,441	92,775
Notes receivable issuances	(13,836)	(31,486)
Decrease in restricted cash	(36)	(179)
Leasing costs	(807)	(1,003)
Leasing incentives	(2)	(87)
Contributions to equity method investments	(715)	(8,887)
Net cash used for investing activities	(37,057)	(149,389)
FINANCING ACTIVITIES
Proceeds from sales of common stock	96,044	31,180
Offering costs	(4,663)	(793)
Debt issuances, credit facility and construction loan borrowings	73,906	185,239
Debt and credit facility repayments, including principal amortization	(130,674)	(75,700)
Debt issuance costs	(471)	(559)
Redemption of operating partnership units	(229)	(58)
Dividends and distributions	(20,097)	(15,873)
Net cash provided by financing activities	13,816	123,436
Net decrease in cash and cash equivalents	(3,355)	(7,005)
Cash and cash equivalents, beginning of period	21,942	26,989
Cash and cash equivalents, end of period	18,587	19,984
Noncash transactions:
Redeemable noncontrolling interest from development	2,000	0
Deferred payment for land acquisition	$ 600	$ 0

Business of Organization

Business of Organization	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business of Organization	Business of Organization Armada Hoffler Properties, Inc. (the “Company”) is a full service real estate company with extensive experience developing, building, owning and managing high-quality, institutional-grade office, retail and multifamily properties in attractive markets primarily throughout the Mid-Atlantic and Southeastern United States. The Company is the sole general partner of Armada Hoffler, L.P. (the “Operating Partnership”). The operations of the Company are carried on primarily through the Operating Partnership and the wholly owned subsidiaries of the Operating Partnership. Both the Company and the Operating Partnership were formed on October 12, 2012 and commenced operations upon completion of the underwritten initial public offering of shares of the Company’s common stock and certain related formation transactions on May 13, 2013. As of June 30, 2017 , the Company's operating property portfolio consisted of the following properties: Property Segment Location Ownership Interest 4525 Main Street Office Virginia Beach, Virginia* 100 % Armada Hoffler Tower Office Virginia Beach, Virginia* 100 % Commonwealth of Virginia-Chesapeake (1) Office Chesapeake, Virginia 100 % Commonwealth of Virginia-Virginia Beach (1) Office Virginia Beach, Virginia 100 % One Columbus Office Virginia Beach, Virginia* 100 % Two Columbus Office Virginia Beach, Virginia* 100 % 249 Central Park Retail Retail Virginia Beach, Virginia* 100 % Alexander Pointe Retail Salisbury, North Carolina 100 % Bermuda Crossroads Retail Chester, Virginia 100 % Broad Creek Shopping Center Retail Norfolk, Virginia 100 % Broadmoor Plaza Retail South Bend, Indiana 100 % Brooks Crossing (2) Retail Newport News, Virginia 65 % Columbus Village Retail Virginia Beach, Virginia* 100 % Columbus Village II Retail Virginia Beach, Virginia* 100 % Commerce Street Retail Retail Virginia Beach, Virginia* 100 % Courthouse 7-Eleven Retail Virginia Beach, Virginia 100 % Dick's at Town Center Retail Virginia Beach, Virginia* 100 % Dimmock Square Retail Colonial Heights, Virginia 100 % Fountain Plaza Retail Retail Virginia Beach, Virginia* 100 % Gainsborough Square Retail Chesapeake, Virginia 100 % Greentree Shopping Center Retail Chesapeake, Virginia 100 % Hanbury Village Retail Chesapeake, Virginia 100 % Harper Hill Commons Retail Winston-Salem, North Carolina 100 % Harrisonburg Regal Retail Harrisonburg, Virginia 100 % Lightfoot Marketplace (3) Retail Williamsburg, Virginia 70 % North Hampton Market Retail Taylors, South Carolina 100 % North Point Center Retail Durham, North Carolina 100 % Oakland Marketplace Retail Oakland, Tennessee 100 % Parkway Marketplace Retail Virginia Beach, Virginia 100 % Patterson Place Retail Durham, North Carolina 100 % Perry Hall Marketplace Retail Perry Hall, Maryland 100 % Providence Plaza Retail Charlotte, North Carolina 100 % Property Segment Location Ownership Interest Renaissance Square Retail Davidson, North Carolina 100 % Sandbridge Commons Retail Virginia Beach, Virginia 100 % Socastee Commons Retail Myrtle Beach, South Carolina 100 % Southgate Square Retail Colonial Heights, Virginia 100 % Southshore Shops Retail Chesterfield, Virginia 100 % South Retail Retail Virginia Beach, Virginia* 100 % South Square Retail Durham, North Carolina 100 % Stone House Square Retail Hagerstown, Maryland 100 % Studio 56 Retail Retail Virginia Beach, Virginia* 100 % Tyre Neck Harris Teeter Retail Portsmouth, Virginia 100 % Waynesboro Commons Retail Waynesboro, Virginia 100 % Wendover Village Retail Greensboro, North Carolina 100 % Encore Apartments Multifamily Virginia Beach, Virginia* 100 % Johns Hopkins Village (4) Multifamily Baltimore, Maryland 80 % Liberty Apartments Multifamily Newport News, Virginia 100 % Smith's Landing Multifamily Blacksburg, Virginia 100 % The Cosmopolitan Multifamily Virginia Beach, Virginia* 100 % (1) These properties were sold on July 13, 2017. (2) The Company is entitled to a preferred return of 8% on its investment in Brooks Crossing. (3) The Company is entitled to a preferred return of 9% on its investment in Lightfoot Marketplace. (4) See discussion of redeemable noncontrolling interest in Note 9 for additional information. The Company is entitled to a preferred return of 9% on its investment in Johns Hopkins Village. *Located in the Town Center of Virginia Beach As of June 30, 2017 , the following properties that the Company consolidates for financial statement purposes were under development or construction: Property Segment Location Ownership Interest Town Center Phase VI Mixed-use Virginia Beach, Virginia* 100 % Harding Place Multifamily Charlotte, North Carolina 80 % 595 King Street Multifamily Charleston, South Carolina 92.5 % 530 Meeting Street Multifamily Charleston, South Carolina 90 % *Located in the Town Center of Virginia Beach Please see Note 5 for information related to the Company’s investment in Durham City Center II, LLC, which is an unconsolidated subsidiary that the Company accounts for using the equity method of accounting.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation The accompanying condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The condensed consolidated financial statements include the financial position and results of operations of the Company and its consolidated subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, consisting of normal recurring accruals, which are necessary for the fair presentation of the financial condition and results of operations for the interim periods presented. The accompanying condensed consolidated financial statements were prepared in accordance with the requirements for interim financial information. Accordingly, these interim financial statements have not been audited and exclude certain disclosures required for annual financial statements. Also, the operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These interim financial statements should be read in conjunction with the audited consolidated financial statements of the Company included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed. Such estimates are based on management’s historical experience and best judgment after considering past, current and expected events and economic conditions. Actual results could differ from management’s estimates. Significant Accounting Policies The accompanying condensed consolidated financial statements were prepared on the basis of the accounting principles described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . Recent Accounting Pronouncements On May 28, 2014, the Financial Accounting Standards Board ("FASB") issued a new standard that provides a single, comprehensive model for recognizing revenue from contracts with customers. While the new standard does not supersede the guidance on accounting for leases, it could change the way the Company recognizes revenue from construction and development contracts with third party customers. The new standard will be effective for the Company on January 1, 2018. The Company plans to adopt the new standard using the full retrospective method. A substantial portion of the Company's revenue consists of rental revenues from leasing arrangements, such as base rent, which is specifically excluded from the revenue guidance. Non-lease components, such as tenant reimbursements for common area maintenance, will be subject to the revenue guidance. Management is currently evaluating the potential impact of the new revenue standard on the Company’s consolidated financial statements. The Company does not expect the new standard to have a material impact on the measure and recognition of gains and losses on the sale of properties. On February 25, 2016, the FASB issued a new lease standard that requires lessees to recognize most leases in their balance sheets as lease liabilities with corresponding right-of-use assets. The new standard also makes targeted changes to lessor accounting. The new standard will be effective for the Company on January 1, 2019 and requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application with an option to use certain transition relief. Management is currently evaluating the potential impact of the new lease standard on the Company’s consolidated financial statements. On March 30, 2016, the FASB issued new guidance that will change the accounting for certain aspects of share-based payments to employees. Entities will be required to recognize the income tax effects of awards in the income statement when the awards vest or are settled, and allows the Company to account for forfeitures as they occur. The new guidance became effective for the Company on January 1, 2017. The Company adopted the guidance on January 1, 2017 and it did not have a material impact on the Company’s consolidated financial statements. On August 26, 2016, the FASB issued new guidance that addresses eight classification issues related to the statement of cash flows. Early adoption is permitted, including adoption in an interim period. This guidance should be applied retrospectively to each period presented. This new guidance will be effective for the Company on January 1, 2018. Management is currently evaluating the potential impact of the new guidance on the Company’s consolidated financial statements. On February 22, 2017, the FASB issued new guidance that clarifies the scope and application of guidance on sales or transfers of nonfinancial assets and in substance nonfinancial assets to customers, including partial sales. The new guidance applies to all nonfinancial assets, including real estate, and defines an in substance nonfinancial asset. The new guidance will be effective for the Company on January 1, 2018, with early adoption permitted. Management is currently evaluating the potential impact of the new revenue standard on the Company’s consolidated financial statements.

Segments

Segments	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Segments	Segments Net operating income (segment revenues minus segment expenses) is the measure used by the Company’s chief operating decision-maker to assess segment performance. Net operating income is not a measure of operating income or cash flows from operating activities as measured by GAAP and is not indicative of cash available to fund cash needs. As a result, net operating income should not be considered an alternative to cash flows as a measure of liquidity. Not all companies calculate net operating income in the same manner. The Company considers net operating income to be an appropriate supplemental measure to net income because it assists both investors and management in understanding the core operations of the Company’s real estate and construction businesses. Net operating income of the Company’s reportable segments for the three and six months ended June 30, 2017 and 2016 was as follows (in thousands): Three Months Ended Six Months Ended 2017 2016 2017 2016 (Unaudited) Office real estate Rental revenues $ 4,759 $ 5,299 $ 9,665 $ 10,820 Rental expenses 1,366 1,298 2,692 2,754 Real estate taxes 450 526 900 1,065 Segment net operating income 2,943 3,475 6,073 7,001 Retail real estate Rental revenues 15,578 14,113 31,209 27,145 Rental expenses 2,479 2,220 4,999 4,556 Real estate taxes 1,520 1,330 2,969 2,614 Segment net operating income 11,579 10,563 23,241 19,975 Multifamily residential real estate Rental revenues 6,418 4,839 13,113 9,569 Rental expenses 2,326 1,553 4,548 3,090 Real estate taxes 625 526 1,235 1,052 Segment net operating income 3,467 2,760 7,330 5,427 General contracting and real estate services Segment revenues 56,671 33,200 120,190 70,003 Segment expenses 54,015 32,025 115,211 67,062 Segment gross profit 2,656 1,175 4,979 2,941 Net operating income $ 20,645 $ 17,973 $ 41,623 $ 35,344 General contracting and real estate services revenues for the three months ended June 30, 2017 and 2016 exclude revenue related to intercompany construction contracts of $11.6 million and $17.9 million , respectively. General contracting services revenues for the six months ended June 30, 2017 and 2016 exclude revenue related to intercompany construction contracts of $17.5 million and $32.9 million , respectively. General contracting and real estate services expenses for the three months ended June 30, 2017 and 2016 exclude expenses related to intercompany construction contracts of $11.6 million and $17.8 million , respectively. General contracting and real estate services expenses for the six months ended June 30, 2017 and 2016 exclude expenses related to intercompany construction contracts of $17.3 million and $32.6 million . General contracting and real estate services expenses for the three months ended June 30, 2017 and 2016 include noncash stock compensation expense of less than $0.1 million and $0.1 million , respectively. General contracting and real estate services expenses for the six months ended June 30, 2017 and 2016 include noncash stock compensation expense of $0.4 million and $0.3 million , respectively. The following table reconciles net operating income to net income, the most directly comparable GAAP measure, for the three and six months ended June 30, 2017 and 2016 (in thousands): Three Months Ended Six Months Ended 2017 2016 2017 2016 (Unaudited) Net operating income $ 20,645 $ 17,973 $ 41,623 $ 35,344 Depreciation and amortization (9,304 ) (8,602 ) (18,779 ) (16,751 ) General and administrative expenses (2,678 ) (2,224 ) (5,664 ) (4,708 ) Acquisition, development and other pursuit costs (369 ) (437 ) (416 ) (1,141 ) Impairment charges (27 ) — (31 ) (35 ) Interest income 1,658 722 3,056 904 Interest expense (4,494 ) (3,978 ) (9,029 ) (7,769 ) Gain on real estate dispositions — 13 3,395 26,687 Change in fair value of interest rate derivatives (81 ) (373 ) 213 (2,762 ) Other income 43 43 80 119 Income tax provision (450 ) (6 ) (752 ) (224 ) Net income $ 4,943 $ 3,131 $ 13,696 $ 29,664 General and administrative expenses for the three months ended June 30, 2017 and 2016 include noncash stock compensation expense of $0.2 million and $0.2 million , respectively. General and administrative expenses for the six months ended June 30, 2017 and 2016 include noncash stock compensation expense of $0.6 million and $0.5 million , respectively.

Real Estate Investment

Real Estate Investment	6 Months Ended
	Jun. 30, 2017
Real Estate [Abstract]
Real Estate Investment	Real Estate Investment Property Acquisitions On January 4, 2017, the Company acquired undeveloped land in Charleston, South Carolina for a contract price of $7.1 million plus capitalized acquisition costs of $0.2 million . The Company intends to use the land for the future development of the 595 King Street property. Subsequent to June 30, 2017 On July 11, 2017, the Company acquired undeveloped land in Charleston, South Carolina for a contract price of $6.7 million plus capitalized acquisition costs of $0.1 million . The Company intends to use the land for the future development of the 530 Meeting Street property. On July 25, 2017, the Company acquired the outparcel phase of Wendover Village in Greensboro, North Carolina for a contract price of $14.3 million plus capitalized acquisition costs of $0.2 million . Property Dispositions On January 20, 2017, the Company completed the sale of the Wawa outparcel at Greentree Shopping Center. Net proceeds after transaction costs were $4.4 million . The gain on the disposition was $3.4 million . On April 20, 2017, the Company entered into an agreement to sell the Courthouse 7-Eleven property for $2.4 million . This agreement was subsequently terminated. Subsequent to June 30, 2017 On July 13, 2017, the Company completed the sale of two office properties leased by the Commonwealth of Virginia in Chesapeake, Virginia and Virginia Beach, Virginia. Aggregate net proceeds after transaction costs from the dispositions of the properties were $12.8 million , and the aggregate gain on the dispositions was $4.2 million .

Equity Method Investment

Equity Method Investment	6 Months Ended
	Jun. 30, 2017
Equity Method Investments and Joint Ventures [Abstract]
Equity Method Investment	Equity Method Investment City Center On February 25, 2016, the Company acquired a 37% interest in Durham City Center II, LLC (“City Center”) for purposes of developing a 22 -story mixed use tower in Durham, North Carolina. As of June 30, 2017 and December 31, 2016 , the Company has invested $11.0 million and $10.3 million , respectively, in City Center. The Company has agreed to guarantee 37% of the construction loan for City Center; however, the loan is collateralized by 100% of the assets of City Center. As of June 30, 2017 , $10.8 million has been drawn against the construction loan, of which $5.5 million is attributable to the Company's portion of the loan. As of June 30, 2017 and December 31, 2016 , the difference between the carrying value of the Company’s initial investment in City Center and the amount of underlying equity was immaterial. For the three and six months ended June 30, 2017 and 2016 , City Center did not have any operating activity, and therefore the Company did not receive any dividends or allocated income. Based on the terms of City Center’s operating agreement, the Company has concluded that City Center is a variable interest entity, and that the Company holds a variable interest. The Company does not have the power to direct the activities of the project that most significantly impact its performance. Accordingly, the Company is not the project’s primary beneficiary and, therefore, does not consolidate City Center in its consolidated financial statements.

Notes Receivable

Notes Receivable	6 Months Ended
	Jun. 30, 2017
Receivables [Abstract]
Notes Receivable	Notes Receivable Point Street Apartments On October 15, 2015, the Company agreed to invest up to $28.2 million in the Point Street Apartments project in the Harbor Point area of Baltimore, Maryland. Point Street Apartments is an estimated $92 million development project with plans for a 17 -story building comprised of 289 residential units and 18,000 square feet of street-level retail space. Beatty Development Group (“BDG”) is the developer of the project and has engaged the Company to serve as construction general contractor. Point Street Apartments is scheduled to open in the fourth quarter of 2017; however, management can provide no assurances that Point Street Apartments will open on the anticipated timeline or be completed at the anticipated cost. BDG secured a senior construction loan of up to $67.0 million to fund the development and construction of Point Street Apartments on November 10, 2016. The Company has agreed to guarantee $25.0 million of the senior construction loan in exchange for the option to purchase up to an 88% controlling interest in Point Street Apartments upon completion of the project as follows: (i) an option to purchase a 79% indirect interest in Point Street Apartments for $27.3 million , exercisable within one year from the project’s completion (the “First Option”) and (ii) provided that the Company has exercised the First Option, an option to purchase an additional 9% indirect interest in Point Street Apartments for $3.1 million , exercisable within 27 months from the project’s completion (the “Second Option”). The Company currently has a $2.1 million letter of credit for the guarantee of the senior construction loan. The Company’s investment in the Point Street Apartments project is in the form of a loan pursuant to which BDG may borrow up to $28.2 million (the “BDG loan”). Interest on the BDG loan accrues at 8.0% per annum and matures on the earliest of: (i) November 1, 2018, which may be extended by BDG under two one -year extension options, (ii) the maturity date or earlier termination of the senior construction loan or (iii) the date the Company exercises the Second Option as described further below. In the event the Company exercises the First Option, BDG is required to pay down the outstanding BDG loan in full, with the difference between the BDG loan and $28.2 million applied to the senior construction loan. In the event the Company exercises the Second Option, BDG is required to simultaneously repay any remaining amounts outstanding under the BDG loan, with any excess proceeds received from the exercise of the Second Option applied against the senior construction loan. In the event the Company does not exercise either the First Option or the Second Option, the interest rate on the BDG loan will automatically be reduced to the interest rate on the senior construction loan for the remaining term of the BDG loan. As of June 30, 2017 and December 31, 2016, the Company had funded $21.5 million and $20.6 million , respectively, under the BDG loan. During the three months ended June 30, 2017 and 2016, the Company recognized $0.4 million and $0.3 million , respectively, of interest income on the BDG loan. During the six months ended June 30, 2017 and 2016 , the Company recognized $0.8 million and $0.4 million , respectively, of interest income on the BDG loan. BDG is current on the BDG loan. Management has concluded that this entity is a VIE. Because BDG is the developer of Point Street Apartments, the Company does not have the power to direct the activities of the project that most significantly impact its performance, nor is the Company the party most closely associated with the project. Therefore, the Company is not the project's primary beneficiary and does not consolidate the project in its consolidated financial statements. Annapolis Junction On April 21, 2016, the Company entered into a note receivable with a maximum balance of $48.1 million in connection with the Annapolis Junction residential component of the Annapolis Junction Town Center project in Maryland (“Annapolis Junction”). Annapolis Junction is an estimated $102.0 million mixed-use development project with plans for 416 residential units, 17,000 square feet of retail space and a 150 -room hotel. Annapolis Junction Apartments Owner, LLC (“AJAO”) is the developer of the residential component and has engaged the Company to serve as construction general contractor for the residential component. Annapolis Junction is scheduled to open in the third quarter of 2017; however, management can provide no assurances that Annapolis Junction will open on the anticipated timeline or at the anticipated cost. AJAO secured a senior construction loan of up to $60.0 million to fund the development and construction of Annapolis Junction's residential component on September 30, 2016. The Company has agreed to guarantee up to $25.0 million of the senior construction loan in exchange for the option to purchase up to an 88% controlling interest in Annapolis Junction upon completion of the project as follows: (i) an option to purchase an 80% indirect interest in Annapolis Junction's residential component for the lesser of the seller’s budgeted or actual cost, exercisable within one year from the project’s completion (the “First Option”) and (ii) provided that the Company has exercised the First Option, an option to purchase an additional 8% indirect interest in Annapolis Junction for the lesser of the seller’s actual or budgeted cost, exercisable within 27 months from the project’s completion (the “Second Option”). The Company’s investment in the Annapolis Junction project is in the form of a loan under which AJAO may borrow up to $48.1 million , including a $6.0 million interest reserve (the “AJAO loan”). Interest on the AJAO loan accrues at 10.0% per annum and matures on the earliest of: (i) December 21, 2020, which may be extended by AJAO under two one -year extension options, (ii) the maturity date or earlier termination of the senior construction loan or (iii) the date the Company exercises the Second Option as described further below. In the event that the Company exercises the First Option, AJAO is required to simultaneously pay down both the senior construction loan and the AJAO loan by 80% , at which time the interest rate on the AJAO loan will automatically be reduced to the interest rate on the senior construction loan. In the event the Company exercises the Second Option, AJAO is required to simultaneously repay any remaining amounts outstanding under the AJAO loan, with any excess proceeds received from the exercise of the Second Option applied against the remaining balance of the senior construction loan. In the event that the Company does not exercise either the First Option or the Second Option, the interest rate on the AJAO loan will automatically be reduced to the interest rate on the senior construction loan for the remaining term of the AJAO loan. As of June 30, 2017 and December 31, 2016, the Company had funded $40.9 million and $38.9 million , respectively, on the AJAO loan. During the three months ended June 30, 2017 and 2016, the Company recognized $1.0 million and $0.5 million , respectively, of interest income on the AJAO loan. During the six months ended June 30, 2017 and 2016, the Company recognized $2.0 and $0.5 million, respectively, of interest income on the AJAO loan. AJAO is current on the AJAO loan. Management has concluded that this entity is a VIE. Because AJAO is the developer of Annapolis Junction, the Company does not have the power to direct the activities of the project that most significantly impact its performance, nor is the Company the party most closely associated with the project. Therefore, the Company is not the project's primary beneficiary and does not consolidate the project in its consolidated financial statements. Decatur On May 15, 2017, the Company invested in the development of a $34 million Whole Foods anchored center located in Decatur, Georgia. The Company's investment is in the form of a mezzanine loan of up to $21.8 million to the developer, North Decatur Square Holdings, LLC ("NDSH"). The mezzanine loan bears interest at an annual rate of 15% . The note matures on the earliest of (i) May 15, 2022, (ii) the maturity of the senior construction loan, (iii) the sale of NDSH or (iv) the sale of the center. NDSH is current on this loan. As of June 30, 2017, the Company had funded $10.8 million on this loan. During the three months ended June 30, 2017 , the Company recognized $0.2 million of interest income on this loan.

Indebtedness

Indebtedness	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Indebtedness	Indebtedness Credit Facility On February 20, 2015, the Operating Partnership, as borrower, and the Company, as parent guarantor, entered into a new $200.0 million senior unsecured credit facility (the "credit facility") that includes a $150.0 million senior unsecured revolving credit facility and a $50.0 million senior unsecured term loan facility. During 2016, the Company increased the borrowings under the term loan facility to $100.0 million . During the first quarter of 2017, the Company increased the borrowings under the term loan facility to $125.0 million , increasing the total capacity of the credit facility to $275.0 million pursuant to the accordion feature. Depending on the Operating Partnership’s total leverage, the revolving credit facility bears interest at LIBOR plus 1.40% to 2.00% and the term loan facility bears interest at LIBOR plus 1.35% to 1.95% , in each case depending on the Company's total leverage as defined under the credit agreement. As of June 30, 2017 , the effective interest rates on the revolving credit facility and the term loan facility were 2.53% and 2.48% , respectively. The revolving credit facility has a scheduled maturity date of February 20, 2019 , with a one -year extension option, subject to certain conditions, and the term loan facility has a scheduled maturity date of February 20, 2020 . The Operating Partnership may, at any time, voluntarily prepay any loan under the credit facility in whole or in part without premium or penalty. On February 25, 2016, the Company amended the credit facility to, among other things, allow the maximum leverage ratio of the Company to be increased to 65% for the two consecutive quarters following any acquisition that is equal to or greater than 10% of the Company’s total asset value (as defined in the credit agreement), but only up to two times during the term of the credit facility. As of June 30, 2017 , the outstanding balances on the revolving credit facility and the term loan facility were $28.0 million and $125.0 million , respectively. Other Financing Activity On February 1, 2017, the Company paid off the North Point Center Note 5 in full for $0.6 million . On February 24, 2017, the Company secured a $29.8 million construction loan for the Harding Place project in Charlotte, North Carolina. On April 7, 2017, the Company paid off the Harrisonburg Regal note in full for $3.2 million . On April 19, 2017, the Company entered into a second amendment to the credit agreement for the Lightfoot Marketplace loan, which amended certain definitions and covenant requirements. On June 29, 2017, the Company secured a $27.9 million construction loan for the Town Center Phase VI project in Virginia Beach, Virginia. During the six months ended June 30, 2017 , the Company borrowed $2.9 million under its construction loans to fund new development and construction. Subsequent to June 30, 2017 On July 13, 2017, the Company repaid in full the remaining balance of $4.9 million for the mortgage secured by the Commonwealth of Virginia building in Chesapeake, Virginia in conjunction with the sale of this property. In July 2017, the Company increased its borrowings under the revolving credit facility by $30.0 million .

Derivative Financial Instrument

Derivative Financial Instruments	6 Months Ended
	Jun. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	Derivative Financial Instruments The Company may enter into interest rate derivative contracts to manage exposure to interest rate risks. The Company does not use derivative financial instruments for trading or speculative purposes. Derivative financial instruments are recognized at fair value and presented within other assets and liabilities in the condensed consolidated balance sheets. Gains and losses resulting from changes in the fair value of derivatives that are neither designated nor qualify as hedging instruments are recognized within the change in fair value of interest rate derivatives in the condensed consolidated statements of income. For derivatives that qualify as cash flow hedges, the effective portion of the gain or loss is reported as a component of other comprehensive loss and reclassified into earnings in the periods during which the hedged forecasted transaction affects earnings. On February 1, 2017, the North Point Center Note 5 was paid in full, which terminated the interest rate swap agreement associated with the note. The loss on the interest rate swap agreement was not significant. On February 7, 2017, the Operating Partnership entered into a LIBOR interest rate cap agreement on a notional amount of $50.0 million at a strike rate of 1.50% for a premium of less than $0.2 million . The interest rate cap agreement expires on March 1, 2019. On June 23, 2017, the Operating Partnership entered into a LIBOR interest rate cap agreement on a notional amount of $50.0 million at a strike rate of 1.50% for a premium of less than $0.2 million . The interest rate cap agreement expires on July 1, 2019. The Company’s derivatives were comprised of the following as of June 30, 2017 and December 31, 2016 (in thousands): June 30, 2017 December 31, 2016 (Unaudited) Notional Amount Fair Value Notional Amount Fair Value Asset Liability Asset Liability Interest rate swaps $ 56,170 $ 13 $ (574 ) $ 56,901 $ — $ (829 ) Interest rate caps 320,000 546 — 270,000 259 — Total $ 376,170 $ 559 $ (574 ) $ 326,901 $ 259 $ (829 ) The changes in the fair value of the Company’s derivatives during the three and six months ended June 30, 2017 and 2016 were comprised of the following (in thousands): Three Months Ended Six Months Ended 2017 2016 2017 2016 (Unaudited) Interest rate swaps $ 7 $ (244 ) $ 268 $ (2,488 ) Interest rate caps (88 ) (129 ) (55 ) (274 ) Total $ (81 ) $ (373 ) $ 213 $ (2,762 ) Income statement presentation: Change in fair value of interest rate derivatives $ (81 ) $ (373 ) $ 213 $ (2,762 ) Total $ (81 ) $ (373 ) $ 213 $ (2,762 )

Equity

Equity	6 Months Ended
	Jun. 30, 2017
Equity [Abstract]
Equity	Equity Stockholders’ Equity On May 4, 2016, the Company commenced an at-the-market continuous equity offering program (the “ATM Program”) through which the Company could, from time to time, issue and sell shares of its common stock having an aggregate offering price of up to $75.0 million . During the six months ended June 30, 2017 , the Company issued and sold an aggregate of 450,690 shares of common stock at a weighted average price of $14.08 per share under the ATM Program, receiving net proceeds, after offering costs and commissions, of $6.2 million . On May 12, 2017, the Company completed an underwritten public offering of 6.9 million shares of common stock at a public offering price of $13.00 per share, which resulted in net proceeds after offering costs and commissions of $85.3 million . As of June 30, 2017 and December 31, 2016 , the Company’s authorized capital was 500 million shares of common stock and 100 million shares of preferred stock. The Company had 44,932,241 and 37,490,361 shares of common stock issued and outstanding as of June 30, 2017 and December 31, 2016 , respectively. No shares of preferred stock were issued and outstanding as of June 30, 2017 or December 31, 2016 . Redeemable Noncontrolling Interests The noncontrolling interest holder of Johns Hopkins Village has the option to redeem the 20% noncontrolling interest in that entity (the "Put Option"). Currently, the Put Option may be redeemed for $2.0 million in cash or the equivalent amount in Class A units of limited partnership interest in the Operating Partnership ("Class A Units"), which is in the holder's control. Upon the first anniversary of the certificate of occupancy, which is expected to occur in August 2017, the Put Option may be settled for the fair value of the 20% noncontrolling interest in Johns Hopkins Village, as determined by appraised value. Because the method of the Put Option's redemption is outside of the Company's control, it has been included in temporary equity. If the Put Option is exercised for redemption in the form of Class A Units, the noncontrolling interest will be reclassed into permanent equity. Noncontrolling Interests As of June 30, 2017 and December 31, 2016 , the Company held a 71.6% and 68.1% interest, respectively, in the Operating Partnership. The Company is the primary beneficiary of the Operating Partnership as it has the power to direct the activities of the Operating Partnership and the rights to absorb 71.6% of the net income of the Operating Partnership. As the primary beneficiary, the Company consolidates the financial position and results of operations of the Operating Partnership. Noncontrolling interests in the Company represent units of limited partnership interest in the Operating Partnership not held by the Company. The Company's financial position and results of operations are the same as those of the Operating Partnership. The noncontrolling interest for the consolidated entities under development or construction (see Note 1) was zero as of June 30, 2017 and December 31, 2016 . As of June 30, 2017 , there were 16,570,512 Class A Units not held by the Company. As partial consideration for the acquisition of Columbus Village, the Operating Partnership issued 1,000,000 Class B Units on July 10, 2015 and issued 275,000 Class C Units on January 10, 2017. The Class B Units were automatically converted to Class A Units on July 10, 2017. Subject to the occurrence of certain events, the Class C Units will not earn or accrue distributions until January 10, 2018, at which time they automatically will convert into Class A Units. On January 10, 2017, the Operating Partnership issued 68,691 Class A Units to acquire the remaining 20% interest in the Town Center Phase VI project. Common Stock Dividends and Class A Unit Distributions On January 5, 2017, the Company paid cash dividends of $6.7 million to common stockholders and the Operating Partnership paid cash distributions of $3.0 million to holders of Class A Units. On April 6, 2017, the Company paid cash dividends of $7.2 million to common stockholders and the Operating Partnership paid cash distributions of $3.2 million to holders of Class A Units. On May 5, 2017, the Board of Directors declared a cash dividend and distribution of $0.19 per share and unit payable on July 6, 2017 to stockholders and unitholders of record on June 28, 2017. Subsequent to June 30, 2017 On July 6, 2017, the Company paid dividends of $8.6 million to common stockholders and the Operating Partnership paid cash distributions of $3.1 million to holders of Class A Units.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation On June 14, 2017, the Company's stockholders approved the Company's Amended and Restated 2013 Equity Incentive Plan (the "Amended Plan"), which, among other things, increased the number of shares of the Company's common stock reserved for issuance under the Amended Plan by 1,000,000 shares, from 700,000 shares to 1,700,000 shares. As of June 30, 2017, there were 1,085,610 shares available for issuance under the Amended Plan. During the six months ended June 30, 2017 , the Company granted an aggregate of 112,097 shares of restricted stock to employees and non-employee directors with a weighted average grant date fair value of $14.05 per share. Employee restricted stock awards generally vest over a period of two years : one-third immediately on the grant date and the remaining two-thirds in equal amounts on the first two anniversaries following the grant date, subject to continued service to the Company. Non-employee director restricted stock awards vest either immediately upon grant or over a period of one year , subject to continued service to the Company. During the six months ended June 30, 2017 , the Company issued performance-based awards in the form of restricted stock units to certain employees. The performance period for these awards is three years , with a required two -year service period immediately following the expiration of the performance period. The compensation expense and the effect on the Company’s weighted average diluted shares calculation were immaterial. During the three and six months ended June 30, 2017 , the Company recognized $0.3 million and $1.1 million , respectively, of stock-based compensation expense. During the three and six months ended June 30, 2016 , the Company recognized $0.3 million and $0.9 million , respectively, of stock-based compensation expense. As of June 30, 2017 , there were 110,519 nonvested restricted shares outstanding; the total unrecognized compensation expense related to nonvested restricted shares was $1.0 million , which the Company expects to recognize over the next 20 months .

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments Fair value measurements are based on assumptions that market participants would use in pricing an asset or a liability. The hierarchy for inputs used in measuring fair value is as follows: Level 1—quoted prices in active markets for identical assets or liabilities Level 2—observable inputs other than quoted prices in active markets for identical assets and liabilities Level 3—unobservable inputs Except as disclosed below, the carrying amounts of the Company’s financial instruments approximate their fair value. Financial assets and liabilities whose fair values are measured on a recurring basis using Level 2 inputs consist of interest rate swaps and caps. The Company measures the fair values of these assets and liabilities based on prices provided by independent market participants that are based on observable inputs using market-based valuation techniques. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. For disclosure purposes, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. The fair value of the Company’s long term debt is sensitive to fluctuations in interest rates. Discounted cash flow analysis based on Level 2 inputs is generally used to estimate the fair value of the Company’s long term debt. Considerable judgment is used to estimate the fair value of financial instruments. The estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized upon disposition of the financial instruments. The carrying amounts and fair values of the Company’s financial instruments, all of which are based on Level 2 inputs, as of June 30, 2017 and December 31, 2016 , were as follows (in thousands): June 30, 2017 December 31, 2016 Carrying Value Fair Value Carrying Value Fair Value (Unaudited) Indebtedness $ 465,291 $ 466,032 $ 522,180 $ 527,414 Interest rate swap liabilities 574 574 829 829 Interest rate swap assets 13 13 — — Interest rate cap assets 546 546 259 259

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2017
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions The Company provides general contracting and real estate services to certain related party entities that are not included in these condensed consolidated financial statements. Revenue from construction contracts with related party entities of the Company for the three months ended June 30, 2017 and 2016 was $11.6 million and $8.4 million , respectively, and gross profit from such contracts for the three months ended June 30, 2017 and 2016 was $0.1 million and $0.6 million , respectively. Revenue from construction contracts with related party entities of the Company for the six months ended June 30, 2017 and 2016 was $17.5 million and $14.9 million , respectively, and gross profit from such contracts for the six months ended June 30, 2017 and 2016 was $0.2 million and $0.3 million , respectively. Real estate services fees from affiliated entities of the Company were not significant for the three and six months ended June 30, 2017 or 2016 . In addition, affiliated entities also reimburse the Company for monthly maintenance and facilities management services provided to the properties. Cost reimbursements earned by the Company from affiliated entities were not significant for the three and six months ended June 30, 2017 and 2016 . The Operating Partnership entered into tax protection agreements that indemnify certain directors and executive officers of the Company from their tax liabilities resulting from the potential future sale of certain of the Company’s properties within seven (or, in a limited number of cases, ten ) years of the completion of the Company’s initial public offering and formation transactions completed on May 13, 2013. In addition, the tax protection agreements provide that the Operating Partnership will offer certain of the original contributors, including certain of the Company’s directors and executive officers, the opportunity to guarantee debt, or, alternatively, to enter into a deficit restoration obligation, for ten years from the closing of the Company’s initial public offering in a manner intended to provide an allocation of Operating Partnership liabilities to the partner for U.S. federal income tax purposes. Pursuant to these tax protection agreements, certain of the Company’s executive officers have guaranteed approximately $0.3 million of the Operating Partnership’s outstanding debt as of June 30, 2017 . The loan for the City Center joint venture is underwritten by a syndicate which includes Park Sterling Bank. The Chief Executive Officer of Park Sterling Bank is the Chairman of the Company’s Audit Committee.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Proceedings The Company is from time to time involved in various disputes, lawsuits, warranty claims, environmental and other matters arising in the ordinary course of business. Management makes assumptions and estimates concerning the likelihood and amount of any potential loss relating to these matters. The Company currently is a party to various legal proceedings. Management accrues a liability for litigation if an unfavorable outcome is determined to be probable and the amount of loss can be reasonably estimated. If an unfavorable outcome is determined to be probable and a range of loss can be reasonably estimated, management accrues the best estimate within the range; however, if no amount within the range is a better estimate than any other, the minimum amount within the range is accrued. Legal fees related to litigation are expensed as incurred. Management does not believe that the ultimate outcome of these matters, either individually or in the aggregate, could have a material adverse effect on the Company’s financial position or results of operations; however, litigation is subject to inherent uncertainties. Under the Company’s leases, tenants are typically obligated to indemnify the Company from and against all liabilities, costs and expenses imposed upon or asserted against it as owner of the properties due to certain matters relating to the operation of the properties by the tenant. Commitments The Company has a bonding line of credit for its general contracting construction business and is contingently liable under performance and payment bonds, bonds for cancellation of mechanics liens and defect bonds. Such bonds collectively totaled $43.0 million and $40.5 million as of June 30, 2017 and December 31, 2016 , respectively. The Operating Partnership has entered into standby letters of credit using the available capacity under the senior unsecured credit facility. The letters of credit relate to the guarantee of future performance on certain of the Company’s construction contracts. Letters of credit generally are available for draw down in the event the Company does not perform. As of June 30, 2017 and December 31, 2016 , the Operating Partnership had total outstanding letters of credit of $4.1 million and $4.1 million , respectively. The amounts outstanding at June 30, 2017 and December 31, 2016 include $2.0 million relating to construction projects and a $2.1 million letter of credit related to the guarantee on the Point Street Apartments senior construction loan.

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The condensed consolidated financial statements include the financial position and results of operations of the Company and its consolidated subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, consisting of normal recurring accruals, which are necessary for the fair presentation of the financial condition and results of operations for the interim periods presented. The accompanying condensed consolidated financial statements were prepared in accordance with the requirements for interim financial information. Accordingly, these interim financial statements have not been audited and exclude certain disclosures required for annual financial statements. Also, the operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These interim financial statements should be read in conjunction with the audited consolidated financial statements of the Company included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 .
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed. Such estimates are based on management’s historical experience and best judgment after considering past, current and expected events and economic conditions. Actual results could differ from management’s estimates.
Significant Accounting Policies	Significant Accounting Policies The accompanying condensed consolidated financial statements were prepared on the basis of the accounting principles described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 .
Recent Accounting Pronouncements	Recent Accounting Pronouncements On May 28, 2014, the Financial Accounting Standards Board ("FASB") issued a new standard that provides a single, comprehensive model for recognizing revenue from contracts with customers. While the new standard does not supersede the guidance on accounting for leases, it could change the way the Company recognizes revenue from construction and development contracts with third party customers. The new standard will be effective for the Company on January 1, 2018. The Company plans to adopt the new standard using the full retrospective method. A substantial portion of the Company's revenue consists of rental revenues from leasing arrangements, such as base rent, which is specifically excluded from the revenue guidance. Non-lease components, such as tenant reimbursements for common area maintenance, will be subject to the revenue guidance. Management is currently evaluating the potential impact of the new revenue standard on the Company’s consolidated financial statements. The Company does not expect the new standard to have a material impact on the measure and recognition of gains and losses on the sale of properties. On February 25, 2016, the FASB issued a new lease standard that requires lessees to recognize most leases in their balance sheets as lease liabilities with corresponding right-of-use assets. The new standard also makes targeted changes to lessor accounting. The new standard will be effective for the Company on January 1, 2019 and requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application with an option to use certain transition relief. Management is currently evaluating the potential impact of the new lease standard on the Company’s consolidated financial statements. On March 30, 2016, the FASB issued new guidance that will change the accounting for certain aspects of share-based payments to employees. Entities will be required to recognize the income tax effects of awards in the income statement when the awards vest or are settled, and allows the Company to account for forfeitures as they occur. The new guidance became effective for the Company on January 1, 2017. The Company adopted the guidance on January 1, 2017 and it did not have a material impact on the Company’s consolidated financial statements. On August 26, 2016, the FASB issued new guidance that addresses eight classification issues related to the statement of cash flows. Early adoption is permitted, including adoption in an interim period. This guidance should be applied retrospectively to each period presented. This new guidance will be effective for the Company on January 1, 2018. Management is currently evaluating the potential impact of the new guidance on the Company’s consolidated financial statements. On February 22, 2017, the FASB issued new guidance that clarifies the scope and application of guidance on sales or transfers of nonfinancial assets and in substance nonfinancial assets to customers, including partial sales. The new guidance applies to all nonfinancial assets, including real estate, and defines an in substance nonfinancial asset. The new guidance will be effective for the Company on January 1, 2018, with early adoption permitted. Management is currently evaluating the potential impact of the new revenue standard on the Company’s consolidated financial statements.
Derivative Financial Instruments	Derivative Financial Instruments The Company may enter into interest rate derivative contracts to manage exposure to interest rate risks. The Company does not use derivative financial instruments for trading or speculative purposes. Derivative financial instruments are recognized at fair value and presented within other assets and liabilities in the condensed consolidated balance sheets. Gains and losses resulting from changes in the fair value of derivatives that are neither designated nor qualify as hedging instruments are recognized within the change in fair value of interest rate derivatives in the condensed consolidated statements of income. For derivatives that qualify as cash flow hedges, the effective portion of the gain or loss is reported as a component of other comprehensive loss and reclassified into earnings in the periods during which the hedged forecasted transaction affects earnings.
Fair Value of Financial Instruments	Fair value measurements are based on assumptions that market participants would use in pricing an asset or a liability. The hierarchy for inputs used in measuring fair value is as follows: Level 1—quoted prices in active markets for identical assets or liabilities Level 2—observable inputs other than quoted prices in active markets for identical assets and liabilities Level 3—unobservable inputs Except as disclosed below, the carrying amounts of the Company’s financial instruments approximate their fair value. Financial assets and liabilities whose fair values are measured on a recurring basis using Level 2 inputs consist of interest rate swaps and caps. The Company measures the fair values of these assets and liabilities based on prices provided by independent market participants that are based on observable inputs using market-based valuation techniques. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. For disclosure purposes, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. The fair value of the Company’s long term debt is sensitive to fluctuations in interest rates. Discounted cash flow analysis based on Level 2 inputs is generally used to estimate the fair value of the Company’s long term debt. Considerable judgment is used to estimate the fair value of financial instruments. The estimates of fair value presented herein are not necessarily indicative of the amounts that could be realized upon disposition of the financial instruments.
Legal Proceedings	Legal Proceedings The Company is from time to time involved in various disputes, lawsuits, warranty claims, environmental and other matters arising in the ordinary course of business. Management makes assumptions and estimates concerning the likelihood and amount of any potential loss relating to these matters. The Company currently is a party to various legal proceedings. Management accrues a liability for litigation if an unfavorable outcome is determined to be probable and the amount of loss can be reasonably estimated. If an unfavorable outcome is determined to be probable and a range of loss can be reasonably estimated, management accrues the best estimate within the range; however, if no amount within the range is a better estimate than any other, the minimum amount within the range is accrued. Legal fees related to litigation are expensed as incurred. Management does not believe that the ultimate outcome of these matters, either individually or in the aggregate, could have a material adverse effect on the Company’s financial position or results of operations; however, litigation is subject to inherent uncertainties. Under the Company’s leases, tenants are typically obligated to indemnify the Company from and against all liabilities, costs and expenses imposed upon or asserted against it as owner of the properties due to certain matters relating to the operation of the properties by the tenant.

Business of Organization (Table

Business of Organization (Tables)	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of owned properties	As of June 30, 2017 , the Company's operating property portfolio consisted of the following properties: Property Segment Location Ownership Interest 4525 Main Street Office Virginia Beach, Virginia* 100 % Armada Hoffler Tower Office Virginia Beach, Virginia* 100 % Commonwealth of Virginia-Chesapeake (1) Office Chesapeake, Virginia 100 % Commonwealth of Virginia-Virginia Beach (1) Office Virginia Beach, Virginia 100 % One Columbus Office Virginia Beach, Virginia* 100 % Two Columbus Office Virginia Beach, Virginia* 100 % 249 Central Park Retail Retail Virginia Beach, Virginia* 100 % Alexander Pointe Retail Salisbury, North Carolina 100 % Bermuda Crossroads Retail Chester, Virginia 100 % Broad Creek Shopping Center Retail Norfolk, Virginia 100 % Broadmoor Plaza Retail South Bend, Indiana 100 % Brooks Crossing (2) Retail Newport News, Virginia 65 % Columbus Village Retail Virginia Beach, Virginia* 100 % Columbus Village II Retail Virginia Beach, Virginia* 100 % Commerce Street Retail Retail Virginia Beach, Virginia* 100 % Courthouse 7-Eleven Retail Virginia Beach, Virginia 100 % Dick's at Town Center Retail Virginia Beach, Virginia* 100 % Dimmock Square Retail Colonial Heights, Virginia 100 % Fountain Plaza Retail Retail Virginia Beach, Virginia* 100 % Gainsborough Square Retail Chesapeake, Virginia 100 % Greentree Shopping Center Retail Chesapeake, Virginia 100 % Hanbury Village Retail Chesapeake, Virginia 100 % Harper Hill Commons Retail Winston-Salem, North Carolina 100 % Harrisonburg Regal Retail Harrisonburg, Virginia 100 % Lightfoot Marketplace (3) Retail Williamsburg, Virginia 70 % North Hampton Market Retail Taylors, South Carolina 100 % North Point Center Retail Durham, North Carolina 100 % Oakland Marketplace Retail Oakland, Tennessee 100 % Parkway Marketplace Retail Virginia Beach, Virginia 100 % Patterson Place Retail Durham, North Carolina 100 % Perry Hall Marketplace Retail Perry Hall, Maryland 100 % Providence Plaza Retail Charlotte, North Carolina 100 % Property Segment Location Ownership Interest Renaissance Square Retail Davidson, North Carolina 100 % Sandbridge Commons Retail Virginia Beach, Virginia 100 % Socastee Commons Retail Myrtle Beach, South Carolina 100 % Southgate Square Retail Colonial Heights, Virginia 100 % Southshore Shops Retail Chesterfield, Virginia 100 % South Retail Retail Virginia Beach, Virginia* 100 % South Square Retail Durham, North Carolina 100 % Stone House Square Retail Hagerstown, Maryland 100 % Studio 56 Retail Retail Virginia Beach, Virginia* 100 % Tyre Neck Harris Teeter Retail Portsmouth, Virginia 100 % Waynesboro Commons Retail Waynesboro, Virginia 100 % Wendover Village Retail Greensboro, North Carolina 100 % Encore Apartments Multifamily Virginia Beach, Virginia* 100 % Johns Hopkins Village (4) Multifamily Baltimore, Maryland 80 % Liberty Apartments Multifamily Newport News, Virginia 100 % Smith's Landing Multifamily Blacksburg, Virginia 100 % The Cosmopolitan Multifamily Virginia Beach, Virginia* 100 % (1) These properties were sold on July 13, 2017. (2) The Company is entitled to a preferred return of 8% on its investment in Brooks Crossing. (3) The Company is entitled to a preferred return of 9% on its investment in Lightfoot Marketplace. (4) See discussion of redeemable noncontrolling interest in Note 9 for additional information. The Company is entitled to a preferred return of 9% on its investment in Johns Hopkins Village. *Located in the Town Center of Virginia Beach
Schedule of properties under development or construction	As of June 30, 2017 , the following properties that the Company consolidates for financial statement purposes were under development or construction: Property Segment Location Ownership Interest Town Center Phase VI Mixed-use Virginia Beach, Virginia* 100 % Harding Place Multifamily Charlotte, North Carolina 80 % 595 King Street Multifamily Charleston, South Carolina 92.5 % 530 Meeting Street Multifamily Charleston, South Carolina 90 % *Located in the Town Center of Virginia Beach

Segments (Tables)

Segments (Tables)	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Net operating income of reportable segments	Net operating income of the Company’s reportable segments for the three and six months ended June 30, 2017 and 2016 was as follows (in thousands): Three Months Ended Six Months Ended 2017 2016 2017 2016 (Unaudited) Office real estate Rental revenues $ 4,759 $ 5,299 $ 9,665 $ 10,820 Rental expenses 1,366 1,298 2,692 2,754 Real estate taxes 450 526 900 1,065 Segment net operating income 2,943 3,475 6,073 7,001 Retail real estate Rental revenues 15,578 14,113 31,209 27,145 Rental expenses 2,479 2,220 4,999 4,556 Real estate taxes 1,520 1,330 2,969 2,614 Segment net operating income 11,579 10,563 23,241 19,975 Multifamily residential real estate Rental revenues 6,418 4,839 13,113 9,569 Rental expenses 2,326 1,553 4,548 3,090 Real estate taxes 625 526 1,235 1,052 Segment net operating income 3,467 2,760 7,330 5,427 General contracting and real estate services Segment revenues 56,671 33,200 120,190 70,003 Segment expenses 54,015 32,025 115,211 67,062 Segment gross profit 2,656 1,175 4,979 2,941 Net operating income $ 20,645 $ 17,973 $ 41,623 $ 35,344
Reconciliation of net operating income to net income	The following table reconciles net operating income to net income, the most directly comparable GAAP measure, for the three and six months ended June 30, 2017 and 2016 (in thousands): Three Months Ended Six Months Ended 2017 2016 2017 2016 (Unaudited) Net operating income $ 20,645 $ 17,973 $ 41,623 $ 35,344 Depreciation and amortization (9,304 ) (8,602 ) (18,779 ) (16,751 ) General and administrative expenses (2,678 ) (2,224 ) (5,664 ) (4,708 ) Acquisition, development and other pursuit costs (369 ) (437 ) (416 ) (1,141 ) Impairment charges (27 ) — (31 ) (35 ) Interest income 1,658 722 3,056 904 Interest expense (4,494 ) (3,978 ) (9,029 ) (7,769 ) Gain on real estate dispositions — 13 3,395 26,687 Change in fair value of interest rate derivatives (81 ) (373 ) 213 (2,762 ) Other income 43 43 80 119 Income tax provision (450 ) (6 ) (752 ) (224 ) Net income $ 4,943 $ 3,131 $ 13,696 $ 29,664

Derivative Financial Instrume23

Derivative Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of derivatives	The Company’s derivatives were comprised of the following as of June 30, 2017 and December 31, 2016 (in thousands): June 30, 2017 December 31, 2016 (Unaudited) Notional Amount Fair Value Notional Amount Fair Value Asset Liability Asset Liability Interest rate swaps $ 56,170 $ 13 $ (574 ) $ 56,901 $ — $ (829 ) Interest rate caps 320,000 546 — 270,000 259 — Total $ 376,170 $ 559 $ (574 ) $ 326,901 $ 259 $ (829 )
Schedule of changes in fair value of derivatives	The changes in the fair value of the Company’s derivatives during the three and six months ended June 30, 2017 and 2016 were comprised of the following (in thousands): Three Months Ended Six Months Ended 2017 2016 2017 2016 (Unaudited) Interest rate swaps $ 7 $ (244 ) $ 268 $ (2,488 ) Interest rate caps (88 ) (129 ) (55 ) (274 ) Total $ (81 ) $ (373 ) $ 213 $ (2,762 ) Income statement presentation: Change in fair value of interest rate derivatives $ (81 ) $ (373 ) $ 213 $ (2,762 ) Total $ (81 ) $ (373 ) $ 213 $ (2,762 )

Fair Value of Financial Instr24

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Carrying amounts and fair values of financial instruments measured based on level two inputs	The carrying amounts and fair values of the Company’s financial instruments, all of which are based on Level 2 inputs, as of June 30, 2017 and December 31, 2016 , were as follows (in thousands): June 30, 2017 December 31, 2016 Carrying Value Fair Value Carrying Value Fair Value (Unaudited) Indebtedness $ 465,291 $ 466,032 $ 522,180 $ 527,414 Interest rate swap liabilities 574 574 829 829 Interest rate swap assets 13 13 — — Interest rate cap assets 546 546 259 259

Business of Organization - Sche

Business of Organization - Schedule of Owned Properties (Details)	6 Months Ended
	Jun. 30, 2017
Brooks Crossing
Business And Organization [Line Items]
Percentage of preferred return on investment	8.00%
Lightfoot Marketplace
Business And Organization [Line Items]
Percentage of preferred return on investment	9.00%
Johns Hopkins Village
Business And Organization [Line Items]
Percentage of preferred return on investment	9.00%
Office | 4525 Main Street
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Office | Armada Hoffler Tower
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Office | Commonwealth of Virginia-Chesapeake
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Office | Commonwealth of Virginia-Virginia Beach
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Office | One Columbus
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Office | Two Columbus
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Retail | 249 Central Park Retail
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Retail | Alexander Pointe
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Retail | Bermuda Crossroads
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Retail | Broad Creek Shopping Center
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Retail | Broadmoor Plaza
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Retail | Brooks Crossing
Business And Organization [Line Items]
Ownership interest percentage in properties	65.00%
Retail | Columbus Village
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Retail | Columbus Village II
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Retail | Commerce Street Retail
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Retail | Courthouse 7-Eleven
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Retail | Dick's at Town Center
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Retail | Dimmock Square
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Retail | Fountain Plaza Retail
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Retail | Gainsborough Square
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Retail | Greentree Shopping Center
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Retail | Hanbury Village
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Retail | Harper Hill Commons
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Retail | Harrisonburg Regal
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Retail | Lightfoot Marketplace
Business And Organization [Line Items]
Ownership interest percentage in properties	70.00%
Retail | North Hampton Market
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Retail | North Point Center
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Retail | Oakland Marketplace
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Retail | Parkway Marketplace
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Retail | Patterson Place
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Retail | Perry Hall Marketplace
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Retail | Providence Plaza
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Retail | Renaissance Square
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Retail | Sandbridge Commons
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Retail | Socastee Commons
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Retail | Southgate Square
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Retail | Southshore Shops
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Retail | South Retail
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Retail | South Square
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Retail | Stone House Square
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Retail | Studio 56 Retail
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Retail | Tyre Neck Harris Teeter
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Retail | Waynesboro Commons
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Retail | Wendover Village
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Multifamily | Encore Apartments
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Multifamily | Johns Hopkins Village
Business And Organization [Line Items]
Ownership interest percentage in properties	80.00%
Multifamily | Liberty Apartments
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Multifamily | Smith's Landing
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%
Multifamily | The Cosmopolitan
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%

Business of Organization - Sc26

Business of Organization - Schedule of Properties Under Development or Construction (Details)	Jun. 30, 2017
Multifamily | Harding Place
Business And Organization [Line Items]
Ownership interest percentage in properties	80.00%
Multifamily | 595 King Street
Business And Organization [Line Items]
Ownership interest percentage in properties	92.50%
Multifamily | 530 Meeting Street
Business And Organization [Line Items]
Ownership interest percentage in properties	90.00%
Town Center Phase VI | Mixed-use
Business And Organization [Line Items]
Ownership interest percentage in properties	100.00%

Segments - Net Income of Report

Segments - Net Income of Reportable Segments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Segment Reporting Information
Rental revenues	$ 26,755	$ 24,251	$ 53,987	$ 47,534
Rental expenses	6,171	5,071	12,239	10,400
Real estate taxes	2,595	2,382	5,104	4,731
Segment revenues	56,671	33,200	120,190	70,003
Segment expenses	54,015	32,025	115,211	67,062
Net operating income	8,267	6,710	16,733	12,709
Operating Segments
Segment Reporting Information
Net operating income	20,645	17,973	41,623	35,344
Office real estate | Operating Segments
Segment Reporting Information
Rental revenues	4,759	5,299	9,665	10,820
Rental expenses	1,366	1,298	2,692	2,754
Real estate taxes	450	526	900	1,065
Net operating income	2,943	3,475	6,073	7,001
Retail real estate | Operating Segments
Segment Reporting Information
Rental revenues	15,578	14,113	31,209	27,145
Rental expenses	2,479	2,220	4,999	4,556
Real estate taxes	1,520	1,330	2,969	2,614
Net operating income	11,579	10,563	23,241	19,975
Multifamily residential real estate | Operating Segments
Segment Reporting Information
Rental revenues	6,418	4,839	13,113	9,569
Rental expenses	2,326	1,553	4,548	3,090
Real estate taxes	625	526	1,235	1,052
Net operating income	3,467	2,760	7,330	5,427
General contracting and real estate services | Operating Segments
Segment Reporting Information
Segment revenues	56,671	33,200	120,190	70,003
Segment expenses	54,015	32,025	115,211	67,062
Net operating income	$ 2,656	$ 1,175	$ 4,979	$ 2,941

Segments - Additional Informati

Segments - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Segment Reporting Information
General contracting and real estate services revenues	$ 56,671	$ 33,200	$ 120,190	$ 70,003
General contracting and real estate services expenses	54,015	32,025	115,211	67,062
Non-cash stock compensation			832	652
General and Administrative Expense
Segment Reporting Information
Non-cash stock compensation	200	200	600	500
General contracting and real estate services | Maximum
Segment Reporting Information
Non-cash stock compensation	100	100	400	300
General contracting and real estate services | Intersegment Eliminations
Segment Reporting Information
General contracting and real estate services revenues	11,600	17,900	17,500	32,900
General contracting and real estate services expenses	$ 11,600	$ 17,800	$ 17,300	$ 32,600

Segments - Reconciliation of Ne

Segments - Reconciliation of Net Operating Income to Net Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Net operating income	$ 8,267	$ 6,710	$ 16,733	$ 12,709
Depreciation and amortization	(9,304)	(8,602)	(18,779)	(16,751)
General and administrative expenses	(2,678)	(2,224)	(5,664)	(4,708)
Acquisition, development and other pursuit costs	(369)	(437)	(416)	(1,141)
Impairment charges	(27)	0	(31)	(35)
Interest income	1,658	722	3,056	904
Interest expense	(4,494)	(3,978)	(9,029)	(7,769)
Gain on real estate dispositions	0	13	3,395	26,687
Change in fair value of interest rate derivatives	(81)	(373)	213	(2,762)
Other income	43	43	80	119
Income tax provision	(450)	(6)	(752)	(224)
Net income	4,943	3,131	13,696	29,664
Operating Segments
Net operating income	20,645	17,973	41,623	35,344
Segment Reconciling Items
Depreciation and amortization	(9,304)	(8,602)	(18,779)	(16,751)
General and administrative expenses	(2,678)	(2,224)	(5,664)	(4,708)
Acquisition, development and other pursuit costs	(369)	(437)	(416)	(1,141)
Impairment charges	(27)	0	(31)	(35)
Interest income	1,658	722	3,056	904
Interest expense	(4,494)	(3,978)	(9,029)	(7,769)
Gain on real estate dispositions	0	13	3,395	26,687
Change in fair value of interest rate derivatives	(81)	(373)	213	(2,762)
Other income	43	43	80	119
Income tax provision	$ (450)	$ (6)	$ (752)	$ (224)

Real Estate Investment - Acquis

Real Estate Investment - Acquisitions (Details) - USD ($) $ in Millions	Jul. 25, 2017	Jul. 11, 2017	Jan. 04, 2017
Charleston, South Carolina
Real Estate Properties
Payments to acquire land			$ 7.1
Capitalized acquisition costs			$ 0.2
Charleston, South Carolina | Subsequent Event
Real Estate Properties
Payments to acquire land		$ 6.7
Capitalized acquisition costs		$ 0.1
Greensboro, North Carolina | Subsequent Event | Wendover Village
Real Estate Properties
Payments to acquire land	$ 14.3
Capitalized acquisition costs	$ 0.2

Real Estate Investment - Dispos

Real Estate Investment - Dispositions (Details) - USD ($) $ in Millions	Jul. 13, 2017	Jan. 20, 2017	Sep. 30, 2017
Courthouse 7-Eleven | Scenario, Forecast
Real Estate Dispositions
Proceeds from sale of real estate			$ 2.4
Wawa | Disposal Group, Disposed of by Sale, Not Discontinued Operations
Real Estate Dispositions
Net proceeds after transaction costs		$ 4.4
Gain (Loss) on disposition of property		$ 3.4
Chesapeake and Virginia Beach, Virginia | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Subsequent Event
Real Estate Dispositions
Net proceeds after transaction costs	$ 12.8
Gain (Loss) on disposition of property	$ 4.2

Equity Method Investment (Detai

Equity Method Investment (Details)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Dec. 31, 2016USD ($)	Feb. 25, 2016story
Schedule of Equity Method Investments [Line Items]
Equity method investments	$ 10,950,000		$ 10,950,000		$ 10,235,000
Long-term Debt	465,291,000		465,291,000		522,180,000
22-Story Mixed Use Tower | City Center
Schedule of Equity Method Investments [Line Items]
Interests in equity method investments						37.00%
Number stories in the mixed use tower (story) | story						22
Equity method investments	11,000,000		11,000,000		10,300,000
Guarantee of construction loan						37.00%
Assets being used as collateral for the construction loan						100.00%
Dividends from equity investment	0	$ 0	0	$ 0
Income from equity method investment			0		$ 0
Long-term Debt	5,500,000		5,500,000
City Center | 22-Story Mixed Use Tower | City Center
Schedule of Equity Method Investments [Line Items]
Long-term Debt	$ 10,800,000		$ 10,800,000

Notes Receivable (Details)

Notes Receivable (Details)

Sep. 30, 2016USD ($)

Apr. 21, 2016USD ($)ft²unitextensionroom

Oct. 15, 2015USD ($)ft²unitstoryextension

Jun. 30, 2017USD ($)

Jun. 30, 2016USD ($)

Jun. 30, 2017USD ($)

Jun. 30, 2016USD ($)

Dec. 31, 2019USD ($)

Dec. 31, 2018USD ($)

May 15, 2017USD ($)

Dec. 31, 2016USD ($)

Nov. 10, 2016USD ($)

Accounts, Notes, Loans and Financing Receivable [Line Items]

Notes receivable

$ 73,382,000

$ 73,382,000

$ 59,546,000

Interest income

1,658,000

$ 722,000

3,056,000

$ 904,000

Loans Receivable

Accounts, Notes, Loans and Financing Receivable [Line Items]

Debt instrument, interest rate

8.00%

Number of times the loan receivable may be extended (extension) | extension

2

Notes receivable

21,500,000

21,500,000

20,600,000

Interest income

400,000

300,000

800,000

400,000

Beatty Development Group | Loans Receivable

Accounts, Notes, Loans and Financing Receivable [Line Items]

Extension period of loan receivable

1 year

Point Street Apartments

Accounts, Notes, Loans and Financing Receivable [Line Items]

Future value of real estate project

$ 92,000,000

Number of stories in building (story) | story

17

Number of residential units (unit) | unit

289

Area of real estate property (sqft) | ft²

18,000

Point Street Apartments | Scenario, Forecast

Accounts, Notes, Loans and Financing Receivable [Line Items]

Ownership interest percentage in properties

9.00%

79.00%

Consideration transferred

$ 3,100,000

$ 27,300,000

Time period after the project completion date in which the company can exercise purchase option

27 months

1 year

Point Street Apartments | Financial Guarantee

Accounts, Notes, Loans and Financing Receivable [Line Items]

Guarantor obligations, maximum exposure (up to)

$ 25,000,000

Point Street Apartments | Financial Guarantee | Letter of Credit

Accounts, Notes, Loans and Financing Receivable [Line Items]

Credit facility, amount outstanding

2,100,000

2,100,000

2,100,000

Point Street Apartments | Maximum

Accounts, Notes, Loans and Financing Receivable [Line Items]

Commitment to invest in a development project (up to)

$ 28,200,000

Ownership interest percentage in properties

88.00%

Point Street Apartments | Maximum | Beatty Development Group

Accounts, Notes, Loans and Financing Receivable [Line Items]

Senior construction loan (up to)

$ 67,000,000

Annapolis Junction Town Center

Accounts, Notes, Loans and Financing Receivable [Line Items]

Future value of real estate project

$ 102,000,000

Number of residential units (unit) | unit

416

Area of real estate property (sqft) | ft²

17,000

Time period after the project completion date in which the company can exercise purchase option

1 year

Number of times the loan receivable may be extended (extension) | extension

2

Notes receivable

40,900,000

40,900,000

$ 38,900,000

Interest income

1,000,000

$ 500,000

2,000,000

$ 500,000

Note receivable maximum principal balance

$ 48,100,000

Number of hotel rooms (room) | room

150

Noncontrolling interest ownership percentage in properties

80.00%

Percentage of voting interests acquired option to purchase additional interests

8.00%

Time period after the project completion date in which the company can exercise additional interests purchase option

27 months

Notes receivable interest reserve

$ 6,000,000

Annapolis Junction Town Center | Loans Receivable

Accounts, Notes, Loans and Financing Receivable [Line Items]

Debt instrument, interest rate

10.00%

Extension period of loan receivable

1 year

Annapolis Junction Town Center | Financial Guarantee

Accounts, Notes, Loans and Financing Receivable [Line Items]

Guarantor obligations, maximum exposure (up to)

$ 25,000,000

Annapolis Junction Town Center | AJAO | Loans Receivable

Accounts, Notes, Loans and Financing Receivable [Line Items]

Percentage of debt required to be paid

80.00%

Annapolis Junction Town Center | Maximum

Accounts, Notes, Loans and Financing Receivable [Line Items]

Commitment to invest in a development project (up to)

$ 48,100,000

Noncontrolling interest ownership percentage in properties

88.00%

Annapolis Junction Town Center | Maximum | AJAO

Accounts, Notes, Loans and Financing Receivable [Line Items]

Senior construction loan (up to)

$ 60,000,000

Whole Foods Anchored Center | Loans Receivable | Decatur, Georgia

Accounts, Notes, Loans and Financing Receivable [Line Items]

Development in Process

$ 34,000,000

Whole Foods Anchored Center | Loans Receivable | Mezzanine Loan

Accounts, Notes, Loans and Financing Receivable [Line Items]

Loan interest at annual rate

15.00%

Whole Foods Anchored Center | Loans Receivable | Mezzanine Loan | North Decatur Square Holdings, LLC

Accounts, Notes, Loans and Financing Receivable [Line Items]

Notes receivable

10,800,000

$ 10,800,000

Interest income

$ 200,000

Development in Process

$ 21,800,000

Indebtedness - Additional Infor

Indebtedness - Additional Information (Details)	Jul. 13, 2017USD ($)	Apr. 07, 2017USD ($)	Feb. 01, 2017USD ($)	Feb. 25, 2016leverage_ratio_increase	Jul. 31, 2017USD ($)	Jun. 30, 2017USD ($)	Jun. 29, 2017USD ($)	Mar. 31, 2017USD ($)	Feb. 24, 2017USD ($)	Dec. 31, 2016USD ($)	Feb. 20, 2015USD ($)
Harrisonburg Regal
Indebtedness
Repayments of long-term debt		$ 3,200,000
Commonwealth Of Virginia | Chesapeake, Virginia | Subsequent Event
Indebtedness
Repayments of long-term debt	$ 4,900,000
Note Payable Five | North Point Center
Indebtedness
Repayments of long-term debt			$ 600,000
Construction Loans
Indebtedness
Borrowings under construction loans						$ 2,900,000
Construction Loans | Harding Place
Indebtedness
Construction loan									$ 29,800,000
Construction Loans | Town Center Phase VI | Virginia Beach, Virginia
Indebtedness
Construction loan							$ 27,900,000
Operating Partnership | Unsecured Debt | New Credit Facility
Indebtedness
Aggregate capacity under the credit facility								$ 275,000,000			$ 200,000,000
Financial covenant, leverage ratio consecutive quarters following any significant acquisition				65.00%
Financial covenant, number of consecutive quarters maintaining leverage ratio following any significant acquisition				6 months
Financial covenant, investments to total asset value				10.00%
Financial covenant, maximum number of times maximum leverage ratio can increase | leverage_ratio_increase				2
Operating Partnership | Unsecured Debt | New Credit Facility | Revolving Credit Facility
Indebtedness
Aggregate capacity under the credit facility											150,000,000
Interest rate on credit facility as of end of period						2.53%
Revolving credit facility, extension option						1 year
Credit facility, amount outstanding						$ 28,000,000
Operating Partnership | Unsecured Debt | New Credit Facility | Revolving Credit Facility | Subsequent Event
Indebtedness
Increase in borrowing					$ 30,000,000
Operating Partnership | Unsecured Debt | New Credit Facility | Revolving Credit Facility | Minimum | LIBOR
Indebtedness
Stated interest rate, basis spread on variable rate						1.40%
Operating Partnership | Unsecured Debt | New Credit Facility | Revolving Credit Facility | Maximum | LIBOR
Indebtedness
Stated interest rate, basis spread on variable rate						2.00%
Operating Partnership | Unsecured Debt | New Credit Facility | Term Loan Facility
Indebtedness
Aggregate capacity under the credit facility								$ 125,000,000		$ 100,000,000	$ 50,000,000
Interest rate on credit facility as of end of period						2.48%
Credit facility, amount outstanding						$ 125,000,000
Operating Partnership | Unsecured Debt | New Credit Facility | Term Loan Facility | Minimum | LIBOR
Indebtedness
Stated interest rate, basis spread on variable rate						1.35%
Operating Partnership | Unsecured Debt | New Credit Facility | Term Loan Facility | Maximum | LIBOR
Indebtedness
Stated interest rate, basis spread on variable rate						1.95%

Derivative Financial Instrume35

Derivative Financial Instruments - Additional Information (Details) - USD ($)	Feb. 01, 2017	Jun. 30, 2017	Jun. 23, 2017	Feb. 07, 2017	Dec. 31, 2016
Derivatives
Interest rate agreement, notional amount		$ 376,170,000			$ 326,901,000
Interest Rate Swaps
Derivatives
Loss on termination of North Point Center Note interest rate swap	$ 0
Interest rate agreement, notional amount		56,170,000			56,901,000
Interest Rate Caps
Derivatives
Interest rate agreement, notional amount		$ 320,000,000	$ 50,000,000	$ 50,000,000	$ 270,000,000
Interest rate cap agreement, strike price			1.50%	1.50%
Interest rate cap agreement, premium (less than)			$ 200,000	$ 200,000

Derivative Financial Instrume36

Derivative Financial Instruments - Schedule of Derivatives (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Jun. 23, 2017	Feb. 07, 2017	Dec. 31, 2016
Derivatives
Notional Amount	$ 376,170,000		$ 376,170,000				$ 326,901,000
Asset, Fair Value	559,000		559,000				259,000
Liability, Fair Value	(574,000)		(574,000)				(829,000)
Changes in fair value of derivatives
Change in fair value of interest rate derivatives	(81,000)	$ (373,000)	213,000	$ (2,762,000)
Total change in fair value	(81,000)	(373,000)	213,000	(2,762,000)
Interest rate swaps
Derivatives
Notional Amount	56,170,000		56,170,000				56,901,000
Asset, Fair Value	13,000		13,000				0
Liability, Fair Value	(574,000)		(574,000)				(829,000)
Changes in fair value of derivatives
Total change in fair value	7,000	(244,000)	268,000	(2,488,000)
Interest rate caps
Derivatives
Notional Amount	320,000,000		320,000,000		$ 50,000,000	$ 50,000,000	270,000,000
Asset, Fair Value	546,000		546,000				259,000
Liability, Fair Value	0		0				$ 0
Changes in fair value of derivatives
Total change in fair value	$ (88,000)	$ (129,000)	$ (55,000)	$ (274,000)

Equity - Additional Information

Equity - Additional Information (Details) - USD ($)	Jul. 06, 2017	May 12, 2017	May 04, 2017	Apr. 06, 2017	Jan. 10, 2017	Jan. 05, 2017	May 04, 2016	Jul. 10, 2015	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Class of Stock
Authorized capital shares of common stock (in shares)									500,000,000		500,000,000		500,000,000
Authorized capital shares of preferred stock (in shares)									100,000,000		100,000,000		100,000,000
Common stock, shares issued (in shares)									44,932,241		44,932,241		37,490,361
Common stock, shares outstanding (in shares)									44,932,241		44,932,241		37,490,361
Preferred stock issued (in shares)									0		0		0
Preferred stock outstanding (in shares)									0		0		0
Redeemable noncontrolling interest, equity percentage									20.00%		20.00%
Redeemable noncontrolling interest									$ 2,000,000		$ 2,000,000
Percentage of Operating Partnership held									71.60%		71.60%		68.10%
Aggregate cash dividends and distributions, paid											$ 20,097,000	$ 15,873,000
Dividends and distributions declared per common share and unit (in dollars per share)			$ 0.19						$ 0.19	$ 0.18	$ 0.38	$ 0.36
Town Center Phase VI
Class of Stock
Noncontrolling interest ownership percentage in properties					20.00%
Class A units
Class of Stock
Ownership interest percentage in properties									0.00%		0.00%		0.00%
Class A Units not held by Company (in shares)									16,570,512		16,570,512
Class A units | Town Center Phase VI
Class of Stock
Acquisition, common units/shares issued or to be issued (in shares)					68,691
Class A units | Operating Partnership
Class of Stock
Aggregate cash dividends and distributions, paid				$ 3,200,000		$ 3,000,000
Class A units | Operating Partnership | Subsequent Event
Class of Stock
Aggregate cash dividends and distributions, paid	$ 3,100,000
Class B units | Columbus Village
Class of Stock
Acquisition, common units/shares issued or to be issued (in shares)								1,000,000
Class C units | Columbus Village
Class of Stock
Acquisition, common units/shares issued or to be issued (in shares)					275,000
Common Stock
Class of Stock
Shares issued through public offering (in shares)											7,350,690
Common stock, shares outstanding (in shares)									44,932,241		44,932,241		37,490,361
Aggregate cash dividends and distributions, paid				$ 7,200,000		$ 6,700,000
Common Stock | Subsequent Event
Class of Stock
Aggregate cash dividends and distributions, paid	$ 8,600,000
New ATM Program | Common Stock
Class of Stock
Maximum aggregate offering price of shares to be sold (up to)							$ 75,000,000
Prior ATM Program | Common Stock
Class of Stock
Shares issued through public offering (in shares)											450,690
Numbers shares issued and sold, weighted average price per share (in dollars per share)									$ 14.08		$ 14.08
Net proceeds after offering costs and commissions from sale of shares											$ 6,200,000
Underwritten Public Offering | Common Stock
Class of Stock
Shares issued through public offering (in shares)		6,900,000
Net proceeds after offering costs and commissions from sale of shares		$ 85,300,000
Issuance of common stock, price per share (in dollars per share)		$ 13

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	Jun. 14, 2017	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Dec. 31, 2016	Jun. 13, 2017
Share-based Compensation Arrangement by Share-based Payment Award
Stock-based compensation expense		$ 0.3	$ 0.3	$ 1.1	$ 0.9
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock granted (in shares)				112,097
Restricted stock granted, grant date fair value (in dollars per share)				$ 14.05
Employee restricted stock award, vesting period				2 years
Non-employee restricted stock award vest grant over period				1 year
Nonvested restricted shares outstanding (in shares)		110,519		110,519
Unrecognized compensation cost		$ 1		$ 1
Unrecognized compensation cost, recognition period				20 months
Restricted Stock | Share-based Compensation Award, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock award, percentage vested on grant date				33.33%
Restricted Stock | Share-based Compensation Award, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock award, percentage vested on grant date				66.66%
Restricted Stock | Share-based Compensation Award, Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award
Restricted stock award, percentage vested on grant date				66.66%
Amended and Restated 2013 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award
Number of additional shares authorized (in shares)	1,000,000
Number of shares reserved for issuance (in shares)	1,700,000					700,000
Shares available for issuance (in shares)		1,085,610		1,085,610
Long Term Incentive Plan | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award
Performance period				3 years
Service period				2 years

Fair Value of Financial Instr39

Fair Value of Financial Instruments - Carrying Amounts and Fair Values of Financial Instruments Measured based on Level Two Inputs (Detail) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Carrying Value
Fair Value of Financial Instruments
Indebtedness	$ 465,291	$ 522,180
Carrying Value | Interest rate swaps
Fair Value of Financial Instruments
Interest rate liabilities	574	829
Interest rate assets	13	0
Carrying Value | Interest rate caps
Fair Value of Financial Instruments
Interest rate assets	546	259
Fair Value | Level 2
Fair Value of Financial Instruments
Indebtedness	466,032	527,414
Fair Value | Level 2 | Interest rate swaps
Fair Value of Financial Instruments
Interest rate liabilities	574	829
Interest rate assets	13	0
Fair Value | Level 2 | Interest rate caps
Fair Value of Financial Instruments
Interest rate assets	$ 546	$ 259

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions	May 13, 2013	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Construction Contracts
Related Party Transactions
Revenue from contracts with affiliated entities		$ 11.6	$ 8.4	$ 17.5	$ 14.9
Construction Contracts | Maximum
Related Party Transactions
Gross profit from related parties		0.1	0.6	0.2	0.3
Real Estate Service Fees
Related Party Transactions
Revenue from contracts with affiliated entities		0	0	0	0
Cost Reimbursements
Related Party Transactions
Revenue from contracts with affiliated entities		$ 0	$ 0	0	$ 0
Tax Protection Agreements | Operating Partnership
Related Party Transactions
Period of opportunity to guarantee debt	10 years
Tax Protection Agreements | Operating Partnership | Executive Officers
Related Party Transactions
Guarantee of debt				$ 0.3
Tax Protection Agreements | Maximum | Operating Partnership
Related Party Transactions
Future sale period for properties	7 years
Future sale period for properties in limited number of cases	10 years

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions	Jun. 30, 2017	Dec. 31, 2016
Commitments and Contingencies
Line of credit, performance and payment bonds	$ 43	$ 40.5
Financial Guarantee | Point Street Apartments | Letter of Credit
Commitments and Contingencies
Credit facility, amount outstanding	2.1	2.1
Financial Guarantee | Construction Loans | Letter of Credit
Commitments and Contingencies
Credit facility, amount outstanding	2	2
Operating Partnership
Commitments and Contingencies
Outstanding letters of credit	$ 4.1	$ 4.1