HCI Group Real Estate Division Acquires New Shopping Center

TAMPA, Fla., Sept. 15, 2016 -- Greenleaf Capital, the real estate division of HCI Group, Inc. (NYSE:HCI), has acquired a newly built shopping center located in Sorrento, Florida, just north of Orlando, for $12.3 million.  

The 61,400 square-foot shopping center, known as the Sorrento Hills Village Shopping Center, is anchored by a 45,600 square foot Publix Super Market, which opened in 2015. Listed #87 on the Fortune 500 list for 2016, Publix is one of the largest U.S. regional grocery chains, with over 1,000 stores throughout the Southeast. Its sales for 2015 exceeded $32 billion. 

The acquisition, which took place on August 16, 2016, was a structured buy-out prearranged as part of a $10.2 million construction loan from Greenleaf to the center’s developer. Construction on the new shopping center began in 2014 and is substantially complete. Five outparcels, purchased separately by the company in a previous transaction, remain available for development, lease or sale. The developer repaid its construction loan concurrently with the acquisition.

Greenleaf financed the acquisition with a $9 million term loan bearing an annual interest rate of 3.75% and paid the remainder in cash.   

The company indicated it expects to realize a one-time gain of approximately $2.0 million ($1.3 million net of tax) as a result of the purchase.

“Sorrento Hills Village is a brand new shopping center located in a growing Orlando suburb,” said Greenleaf Capital President Anthony Saravanos, CCIM, CDP. “With Publix as its anchor, the center has drawn strong interest from other retailers, resulting in lease commitments for 96% of the available retail space. We are pleased to have locked in attractive financing terms and anticipate this property will be a positive addition to our real estate portfolio with an expected cap rate of approximately 7.8%. More additions, including one grocery anchored project and one retail ground lease project, are in the pipeline.”

About Greenleaf Capital
Greenleaf Capital, LLC is the real estate division of HCI Group, Inc.  It owns and manages several Florida real estate properties, including office buildings in Ocala and Tampa, a marina and retail shopping center in Tierra Verde with adjacent undeveloped land, a marina and restaurant in Treasure Island also with adjacent undeveloped land, and a Publix-anchored retail shopping center in Sorrento, Florida.

About HCI Group, Inc.
HCI Group, Inc. owns subsidiaries engaged in diverse, yet complementary business activities, including homeowners insurance, reinsurance, real estate and information technology. The company's largest subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc., is a leading provider of property and casualty insurance in the state of Florida.

The company's common shares trade on the New York Stock Exchange under the ticker symbol "HCI" and are included in the Russell 2000 and S&P SmallCap 600 Index. Its 8% Senior Notes trade on the New York Stock Exchange under the ticker symbol "HCJ." For more information about HCI Group, visit www.hcigroup.com.

Company Contact:
Kevin Mitchell, Vice President of Investor Relations
HCI Group, Inc.
Tel (813) 405-3603
[email protected]

Investor Relations Contact:
Michael Koehler
Liolios Group, Inc.
Tel (949) 574-3860
[email protected]