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News Release

Federal Realty Investment Trust Announces the Closing of Construction Loan for Santana Row

ROCKVILLE, Md.--(BUSINESS WIRE)--April 17, 2001--

Also Closes Mortgage Loan on Brick Plaza and Interest Rate Hedges

on Term Loan

Federal Realty Investment Trust (NYSE:FRT) today announced that it has closed a $295 million construction loan associated with the development of its Santana Row property in San Jose, California.

The construction loan was led by Commerzbank AG, as Administrative Agent, Fleet National Bank, as Syndication Agent, and Bayerische Hypo-und Vereinsbank AG, as Documentation Agent, with Bayerische Landesbank Bank, Landesbank Hessen-Thuringen Girozentrale, MidFirst Bank and Bank of Montreal as participants in the bank group.

Borrowing under the construction loan, which is subject to the successful execution of certain leasing and other criteria, will initially bear interest at LIBOR plus 212.5 basis points, and will be guaranteed by Federal Realty. Both the interest rate and Federal Realty's guarantee of the loan will be subject to step-down provisions based on the satisfaction of specified conditions.

The loan has a three-year term, with two, one-year extension options.

Federal Realty also announced the closing of a $33 million mortgage placement associated with its Brick Plaza shopping center property in Brick, New Jersey. The loan, which will be cross-collateralized with the $152 million, five property mortgage placement the Trust closed in October 2000, will have a 15-year term, and will bear interest at 7.415%.

In addition, the Trust announced that it has fixed the interest rate on its entire $125 million floating-rate term loan through a series of interest rate swap transactions. The swaps, which effectively fix the rate of the term loan at 6.22%, mature in December 2003, coterminous with the loan.

Ron D. Kaplan, Federal Realty's chief investment officer commented, "We are pleased to have commitments from these high-caliber lending institutions to finalize the funding of construction for the first phase of Santana Row. In addition, we have significantly reduced our exposure to increases in short-term interest rates through our hedging activity over the last several months."

Federal Realty Investment Trust is an equity real estate investment trust specializing in the ownership, management, development and re-development of high quality retail and mixed-use properties.

The Trust owns or has an interest in 154 real estate assets consisting of community and neighborhood shopping centers and retail and urban mixed-use properties located in strategic metropolitan markets across the United States. The Trust is nationally recognized for its main street revitalization programs as well as the development of urban mixed-use, pedestrian-friendly communities.

Federal Realty has paid quarterly dividends to its shareholders continuously since its founding in 1962, and has increased its dividend rate for 33 consecutive years. Shares of Federal Realty are traded on the New York Stock Exchange under the symbol FRT.

Additional information about Federal Realty and Santana Row can be found on the Internet at www.federalrealty.com.

Federal Realty Investment Trust
Media Inquiries
Kris Warner, 301/998-8212
Investor Inquiries
Andrew Blocher, 301/998-8166