Birmingham, Ala. — Maryland-based Federal Realty Investment Trust has acquired The Summit, an 870,000-square-foot, open-air shopping center in Birmingham, for $508 million. Purchased from the original developer, locally based Bayer Properties, the 100-acre property is the most visited retail destination in Alabama, drawing nearly 9 million annual visits, according to Federal Realty. As reported by the Birmingham Business Journal, Bayer sold its property management and leasing portfolio to Dallas-based Centennial in 2022, though the company’s original underlying real estate assets were not part of that sale.
The acquisition is expected to be funded on a long-term basis with a combination of net sale proceeds, free cash flow and funds from Federal Realty’s recently issued convertible notes.
Situated at the intersection of I-459 and U.S. Highway 280, The Summit opened in 1997 with initial retailers like Barnes & Noble and Parisian (which later transitioned into a flagship store for Belk), expanding in phases through 2009.
The Summit now features more than 110 tenants, including Apple, Trader Joe’s, RH, Nordstrom Rack, Alo Yoga, Sephora and North Italia, with over 30 tenants operating their only Alabama location at the center. At the time of sale, The Summit was 92 percent occupied.
In February 2026, the Birmingham City Council also approved a 45,000-square-foot expansion project at the property, which will introduce more first-to-Alabama retailers like Aritzia, Garage and PopUpBagel, according to various media sources.
“Opportunities to buy truly irreplaceable, dominant assets like The Summit don’t come along often, and we can’t be more excited about adding this property to our portfolio,” says Don Wood, president and CEO of Federal Realty. “This acquisition has exceptional mark-to-market opportunities over the next five years and enhances and expands our already deep retailer relationships that we will be able to use to benefit many of our other assets.”
With the addition of The Summit, Federal Realty’s Central region now encompasses seven properties and approximately 2.7 million square feet across Chicago, Kansas City, Omaha and Birmingham.
— Abby Cox