Best-in-class REIT accelerates growth in core market with addition of Safeway and Giant-anchored property.
NORTH BETHESDA, Md., April 21, 2022 /PRNewswire/ -- Federal Realty Investment Trust (NYSE: FRT) is acquiring Kingstowne Towne Center in Kingstowne, Virginia for a total purchase price of $200 million. The acquisition will close in two phases. Federal Realty has closed on phase one of the acquisition for $100 million and expects to close on phase two for $100 million in July, subject to customary closing conditions. Combined, the property comprises 410,000 square feet of retail space on 45 acres of land.
Located in Virginia's Fairfax County near TSA's new headquarters, Kingstowne Towne Center is surrounded by 5,200 homes, four commercial office buildings, and a planned multifamily development, and is part of a one million-square-foot regional retail node that attracts approximately 8.3 million visits annually—amongst the most visited retail destinations in Virginia.
The combined property is 97% leased and features a diversified tenant lineup that includes grocery anchors Safeway and Giant, national retailers T.J. Maxx, Ross and HomeGoods, and fast-casual concepts &pizza and Cava, among others. Federal Realty anticipates increasing the asset's value over time through remerchandising and incremental capital investment. Kingstowne Towne Center is comparable to other large, market-dominant Federal Realty assets such as the double grocery-anchored center, Barracks Road.
"Kingstowne Towne Center has afforded us a rare opportunity to own 45 acres of land in one of the country's most desirable markets," said Jeff Berkes, President and Chief Operating Officer for Federal Realty. "The large property, which boasts attractive demographics and significant barriers to entry, is a valuable addition to our expanding Northern Virginia portfolio and further demonstrates our corporate commitment to investing in value-enhancing acquisitions."
The Kingstowne acquisition is the latest addition to Federal Realty's growing investment in its Northern Virginia portfolio which includes the recent acquisitions of Twinbrooke Shopping Centre in Fairfax and Chesterbrook in McLean and the recent renovation of Birch & Broad in Falls Church. With the addition of Kingstowne Towne Center, Federal Realty owns and operates over 4 million square feet of real estate in Virginia.
About Federal Realty
Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail-based properties located primarily in major coastal markets from Washington, D.C. to Boston as well as San Francisco and Los Angeles. Founded in 1962, Federal Realty's mission is to deliver long-term, sustainable growth through investing in communities where retail demand exceeds supply. Its expertise includes creating urban, mixed-use neighborhoods like Santana Row in San Jose, California, Pike & Rose in North Bethesda, Maryland and Assembly Row in Somerville, Massachusetts. These unique and vibrant environments that combine shopping, dining, living and working provide a destination experience valued by their respective communities. Federal Realty's 104 properties include approximately 3,100 tenants in 25 million square feet, and approximately 3,400 residential units.
Federal Realty has increased its quarterly dividends to its shareholders for 54 consecutive years, the longest record in the REIT industry. Federal Realty is an S&P 500 index member and its shares are traded on the NYSE under the symbol FRT. For additional information about Federal Realty and its properties, visit www.federalrealty.com.
Leah Andress Brady
Vice President, Investor Relations
Director, Corporate Communications
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SOURCE Federal Realty Investment Trust