110-Acre Retail Hub with Market-Dominant Position and Strong Tenant Sales

NORTH BETHESDA, Md., June 3, 2024 /PRNewswire/ -- Federal Realty Investment Trust (NYSE:FRT) is pleased to announce the acquisition of Virginia Gateway, an approximately 665,000-square-foot irreplaceable regionally-dominant retail center spanning 110-acres in Gainesville, Virginia, for $215 million. The property is approximately 95% occupied and features strong tenant sales and high traffic counts in an affluent and growing market.

Situated at the intersection of Route 29 and I-66, Virginia Gateway is a prominent retail and entertainment hub with exceptional visibility and access, drawing visitors from a wide regional trade area. In 2023, the property ranked third in Virginia for annual visits, according to Placer.ai, just behind Tysons Corner. The high traffic volumes drive strong tenant sales at the property across categories, but particularly in food and beverage.

Virginia Gateway offers a diverse and unique mix of tenants and experiences across its 110-acres, organized into five distinct components:

(i) the Giant Food grocery-anchored shopping center,
(ii) the Promenade featuring national specialty retailers and dining options,
(iii) the pedestrian-oriented Atlas Walk town center,
(iv) Plaza I & II featuring major retailers like HomeGoods and Ulta Beauty, and
(v) Plaza IV anchored by Total Wine & More and Hobby Lobby.

The property also benefits from shadow anchors such as Super Target, Lowe's, and BJ's Wholesale Club. Importantly, Virginia Gateway has approximately 300,000 square feet of small shop space which is expected to be a meaningful driver of future growth. For an aerial image of Virginia Gateway, click here.

Gainesville, Virginia demonstrates robust demographics with the strong population supported by an influx of higher-paying jobs. The average household income within a three-mile radius of the property exceeds $184,000, surpassing the company's in-place portfolio average. This prime suburban location offers convenient access to the Dulles Technology Corridor, known for its concentration of defense contracting and tech jobs, further enhancing Gainesville's appeal. 

Jeff Berkes, President & Chief Operating Officer of Federal Realty, remarked: "We are extremely fortunate to have acquired Virginia Gateway, which is a dominant, irreplaceable regional shopping center that aligns perfectly with our acquisition strategy. A retail property of this size and scale, located in an affluent trade area at a heavily trafficked interchange, is not reproducible in today's market environment. With the addition of this highly productive regional center, Federal Realty's Northern Virginia portfolio grows to 3.6 million square feet, solidifying our presence in this thriving region."

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 102 properties include approximately 3,300 tenants, in 26 million commercial square feet, and approximately 3,100 residential units.

Federal Realty has increased its quarterly dividends to its shareholders for 56 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.

Inquiries:
Brenda Pomar
Senior Director, Corporate Communications
301.998.8316
bpomar@federalrealty.com 

Cision View original content:https://www.prnewswire.com/news-releases/federal-realty-acquires-virginia-gateway-in-dynamic--affluent-northern-virginia-302162349.html

SOURCE Federal Realty Investment Trust

Copyright 2024 PR Newswire

Federal Realty Investment (NYSE:FRT)
Historical Stock Chart
From Oct 2024 to Nov 2024 Click Here for more Federal Realty Investment Charts.
Federal Realty Investment (NYSE:FRT)
Historical Stock Chart
From Nov 2023 to Nov 2024 Click Here for more Federal Realty Investment Charts.