Federal Realty Blends Retail with Residential, Culture, More Parking
Rockville, MD – Mixing old favorites with new faces, Federal Realty Investment Trust (NYSE:FRT) announced today that it has leased space to the first ten restaurants and retailers who will inaugurate Rockville Town Square later this year.
Restaurants and cafes lead the list of merchants signing up for Rockville Town Square, the reincarnation of the old downtown that will blend retailers, condominiums and offices on 12.5 acres. City of Rockville officials led the transformation of the property that's generating area-wide excitement as it rapidly takes shape.
Taste of Saigon will move its popular restaurant from across the street into the new complex, and will be joined by Primo Italiano, Lebanese Taverna, Sushi Damo, Giffords's Ice Cream and Starbucks Coffee. Chevy Chase Bank, Hair Cuttery, The Papery and a CVS drugstore will join the lineup of eateries and cafes.
“This is a positive start to providing customers and residents with comfortable places to relax and dine, while adding new night life to downtown Rockville,” said Wendy Seher, leasing director for Federal Realty Investment Trust. “In the near future we expect to add an upscale grocer, health club and day spa, along with a home décor store, women's clothing stores and more restaurants.”
Seher said Federal Realty will attract a mix of local and national restaurants and retailers to Rockville Town Square. She said Federal Realty will be announcing more new merchants soon, which will complement the existing Regal Theaters multiplex and future retailers in the emerging downtown.
Federal Realty is teaming with its public partner, the City of Rockville, and its private partner RD Rockville LLC – Ross Development and DANAC Development – to build the eagerly awaited community of shops, cafes, condominiums and restaurants that will round out the 12.5-acre complex. Prominent amid the new streetscape will be Montgomery County's largest library, a cultural arts center, a central plaza to host several open-air events each year and additional parking. The $352 million complex includes $88 million in public funds from local, state and federal governments.
The 649 condominiums that will top the shops and restaurants in Rockville Town Square are selling briskly, with the cost of some units surpassing the $1 million mark. The new residences are rapidly taking shape and their neo-traditional architecture will soon be visible.
Federal Realty is tapping its success in creating active, urban environments at Bethesda Row, The Village at Shirlington, Pentagon Row and Santana Row in California to combine similar ingredients to enliven Rockville Town Square. The new town center already fills a large block in the heart of Rockville, on Route 355 across from the Rockville Metro station. City and county offices, courthouses and hundreds of new apartments surround the growing complex of five-story buildings.
Federal Realty will fill 175,000 square feet with retail and restaurants. Nearly 1,000 new public parking spaces will be created in on-street parking and in three public parking garages. Tree-lined streets will include sidewalk cafes, benches and artwork. A .3/4 acre public plaza in front of the library – the largest in the Montgomery County system – will host special events, concerts and farmers' markets.
The City of Rockville and its private partners broke ground June 14, 2004, and expect to open parts of Rockville Town Square in late 2006.
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 17.3 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 0.5 million square feet of retail space through its joint venture with Clarion Lion Properties Fund in which the Trust has a 30% interest. Our operating portfolio (excluding joint venture properties) was 95.5% leased to national, regional, and local retailers as of September 30, 2005, with no single tenant accounting for more than 2.2% 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 38 consecutive years, the longest consecutive record in the REIT industry. Shares of Federal Realty are traded on the NYSE under the symbol FRT.
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