Federal Realty Investment Trust Sells Levare Apartments for $74M
Federal Realty Investment Trust Announces Significant Property Sale
In a strategic move to enhance its portfolio, Federal Realty Investment Trust (NYSE: FRT) has successfully completed the sale of Levare Apartments, a notable 108-unit Class A residential building. This property, situated within the vibrant Santana Row community, has been sold for an impressive $74 million, showcasing Federal Realty's commitment to maximizing long-term value.
Levare's Role in Santana Row
Since its delivery in 2011, Levare has significantly contributed to the transformation of Santana Row, a landmark mixed-use destination in a prime urban setting. As the property progressed through its lifecycle, Federal Realty recognized an opportune moment to capitalize on its value. Notably, at the time of the sale, Levare boasted a commendable 95% occupancy rate.
Quotes from Key Executives
Jan Sweetnam, Executive Vice President and Chief Investment Officer at Federal Realty Investment Trust, remarked, "This transaction reflects our ability to unlock value at the right time and redeploy capital toward opportunities with the greatest long-term potential." He emphasized that this sale exemplifies the company’s broader strategy aimed at enhancing returns while enriching high-performing assets such as Santana Row.
Will Purcell, Director at Eastdil Secured, further highlighted Levare's appeal, stating, "Levare represents the type of high-quality, well-located multifamily asset that continues to attract strong institutional interest, even in a selective investment environment. Its desirable location within Santana Row makes it an especially compelling offering."
Santana Row: A Prime Mixed-Use Destination
Santana Row stands as Silicon Valley's premier mixed-use destination, encompassing over 2.5 million square feet of diverse retail, office, residential, and hotel offerings. The neighborhood is home to more than 50 shops, 30 restaurants, and a substantial number of homes and office spaces, including approximately 662 rental apartments and 219 condominiums, along with a boutique hotel. This robust environment attracts more than 8.5 million visitors annually, showcasing sustained demand across various asset classes.
About Federal Realty Investment Trust
Since its inception in 1962, Federal Realty has focused on achieving long-term, sustainable growth by investing in communities with a strong demand for retail. The company excels in developing urban, mixed-use neighborhoods like Santana Row in San Jose, Pike & Rose in North Bethesda, and Assembly Row in Somerville. These vibrant spaces blend shopping, dining, and living, creating valued experiences for their communities. Currently, Federal Realty manages 103 properties, which encompass around 3,500 tenants across 27 million square feet of commercial space and approximately 3,100 residential units.
In an impressive feat, Federal Realty has increased its quarterly dividends to shareholders for 57 consecutive years, a record unmatched in the REIT sector. Moreover, it is an esteemed member of the S&P 500 index, with shares traded on the NYSE under the ticker symbol FRT. For further insights into Federal Realty and its diverse real estate portfolio, visit their official website.
Frequently Asked Questions
What is the significance of the sale of Levare Apartments?
The sale reinforces Federal Realty's strategy of optimizing their portfolio by reallocating capital towards higher-return opportunities while realizing value from their assets.
What is Federal Realty's strategy for growth?
Federal Realty is committed to long-term sustainable growth through investments in communities with high retail demand and by developing mixed-use neighborhoods.
What unique features does Santana Row offer?
Santana Row features a mix of retail, dining, residential, and office spaces, making it a vibrant destination with over 2.5 million square feet dedicated to various uses.
How has Federal Realty performed in terms of dividends?
Federal Realty has successfully increased its quarterly dividends for 57 consecutive years, showcasing a strong commitment to shareholder returns.
Where can I find more information about Federal Realty?
More details about Federal Realty and their properties can be found on their official website, which highlights their investment strategy and project portfolios.
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