Federal Realty Acquires Del Mar Village in Boca Raton, Florida
- Acquisition represents Federal Realty's entrance into South Florida -
ROCKVILLE, Md., June 2 /PRNewswire-FirstCall/ -- Federal Realty Investment Trust (NYSE: FRT) today announced the acquisition of Del Mar Village, a 154,000 square foot grocery-anchored, neighborhood shopping center at the intersection of Palmetto Park Road and Powerline Road in Boca Raton, Florida. Federal Realty acquired the property from a private owner for $41.7 million in cash.
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The acquisition of Del Mar Village reflects the Trust's strategy of acquiring assets in Palm Beach, Broward and Miami-Dade counties in South Florida; areas that possess dense populations, a high degree of affluence and significant barriers to entry. Consistent with those criteria, Del Mar Village has over 50,000 households and average household incomes in excess of $95,000 within a 3 mile radius of the property.
"Our specific target areas of South Florida share many attributes with our existing coastal core markets, including strong demographics, significant barriers to entry and highly fragmented property ownership," commented Donald Wood, president and chief executive officer of Federal Realty Investment Trust. "The Trust's entry into South Florida expands our ability to utilize our core leasing and redevelopment competencies to support our corporate goal of consistent, top-tier, low-risk earnings growth."
Del Mar Village was recently renovated and is anchored by a 44,000 square foot Winn Dixie, a highly productive 10,000 square foot CVS drugstore, and a 10,000 square foot Sweet Tomatoes, a regional American restaurant. Federal Realty expects to generate property operating income growth at Del Mar Village by making improvements to the existing merchandising, and re-leasing spaces where the tenants are paying below market rents over time.
"Del Mar Village is a great addition to our core portfolio as it not only fits our selective, low-risk acquisition criteria, but allows us to initiate our expansion into South Florida," said Jeff Berkes, executive vice president and chief investment officer for Federal Realty. "As with our other core markets, our experience in utilizing creative deal structures to solve specific financial and tax structuring requirements of potential sellers represents a competitive advantage as we search for appropriate opportunities to expand our presence in this market."
About Federal Realty
Federal Realty Investment Trust is an equity real estate investment trust specializing in the ownership, management, development, and redevelopment of high quality retail assets. Federal Realty's portfolio (excluding joint venture properties) contains approximately 18.4 million square feet located primarily in strategic metropolitan markets in the Northeast, Mid-Atlantic, and California. In addition, the Trust has an ownership interest in approximately 1.0 million square feet of retail space through a joint venture in which the Trust has a 30% interest. Our operating portfolio (excluding joint venture properties) was 96.1% leased to national, regional, and local retailers as of March 31, 2008, with no single tenant accounting for more than approximately 2.7% of annualized base rent. Federal Realty has paid quarterly dividends to its shareholders continuously since its founding in 1962, and has increased its dividend rate for 40 consecutive years, the longest record in the REIT industry. Federal Realty is an S&P MidCap 400 company and its shares are traded on the NYSE under the symbol FRT.
SOURCE Federal Realty Investment Trust -0- 06/02/2008 /CONTACT: Andrew Blocher, Senior Vice President, Capital Markets & Investor Relations, +1-301-998-8166, firstname.lastname@example.org, or Vikki Kayne, Vice President, Marketing & Corporate Communications, +1-301-998-8178, email@example.com, both of Federal Realty Investment Trust/ /Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20050907/DCW070LOGO AP Archive: http://photoarchive.ap.org PRN Photo Desk, firstname.lastname@example.org/ /Web site: http://www.federalrealty.com / (FRT) CO: Federal Realty Investment Trust ST: Maryland, Florida IN: RLT FIN SU: PDT RF-BS -- NEM057 -- 4801 06/02/2008 08:00 EDT http://www.prnewswire.com