North Bethesda, Md. — Federal Realty Investment Trust has acquired four retail properties in California, Virginia and Arizona totaling 1.75 million square feet. Acquisitions include Grossmont Shopping Center, located 10 miles outside San Diego in La Mesa, California; Camelback Colonnade and Hilton Village, both located in the Phoenix metropolitan area; and Chesterbrook Shopping Center, located 10 miles outside Washington, D.C., in McLean, Virginia.
Federal Realty will own 80 percent interest in the four properties, which occupy 125 acres of land valued at $407 million.
The 925,000-square-foot Grossmont Shopping Center was 99 percent occupied at the time of sale by tenants including Target, Walmart, CVS/pharmacy, Macy’s, Reading Cinemas and Barnes and Noble. Federal acquired a 60 percent controlling interest in the property based on a gross value of $175 million. The new ownership plans to redevelop the center, details of which were undisclosed.
The company is under binding contract to acquire the fee interest in Camelback Colonnade, a 642,000-square-foot super regional shopping center located in Phoenix, and a leasehold interest in Hilton Village, a 93,000-square-foot retail center located in Scottsdale, Arizona.
Camelback Colonnade is 99 percent occupied by tenants including Fry’s Supermarket, Best Buy, Marshalls, PetSmart, Old Navy, Bed Bath & Beyond, Ulta Beauty, Michaels, Staples, Floor & Décor and Nordstrom Last Chance. Hilton Village is 96 percent occupied by tenants such as CVS/pharmacy, Houston’s, Wells Fargo Bank and Chase Bank. Federal Realty plans to increase the value of both centers through remerchandising
The 90,000-square-foot Chesterbrook Shopping Center in McLean was 83 percent occupied at the time of sale by tenants including grocery anchor Safeway, Walgreens and Starbucks Coffee. The new ownership plans to increase the value of the property over time through remerchandising and incremental capital investment.