ROCKVILLE, Md., Jan. 12, 2015 /PRNewswire/ -- Federal Realty Investment Trust (NYSE: FRT) today announced the acquisition of a controlling interest in a 376,000 square-foot shopping center in Mountain View, California based on a total value of $62.2 million. San Antonio Shopping Center is located immediately southeast of the intersection of El Camino Real and San Antonio Road – two major and important thoroughfares serving the Bay Area's affluent, tech and academic driven communities of Mountain View, Palo Alto and Los Altos. The acquisition was made using a combination of approximately 58,000 downREIT units, $18 million of cash and the assumption of $18.7 million of fixed rate debt secured by the property.
"San Antonio Shopping Center has been on our radar screen for some time due to the size of the property, strength of this trade area and long-term potential," commented Jeff Berkes, Federal Realty's President, West Coast. "With exceptional access to some of the Bay Area's most critical roadways and mass transit, we expect this property will deliver immediate value as well as opportunities for significant long term appreciation," he added.
With the headquarter locations for Google, LinkedIn and nearby Stanford University in Palo Alto, Mountain View has become the center for job growth in Silicon Valley. Several notable companies, including Accenture, Genencor, Mercedes-Benz Research & Development, Microsoft, Xerox, Tesla, VMware, Dell, Lockheed Martin, Schering-Plough, Skype, Groupon, Nokia and SAP, are either headquartered, or have a major presence, within 5 miles of San Antonio Shopping Center.
San Antonio Shopping Center has nearly 30 national, regional, and local tenants: anchors Walmart and Kohl's provide a strong regional draw to the property, while Trader Joe's and 24 Hour Fitness serve the needs of the local community. The property boasts demographics that enhance Federal Realty's already sector-leading position, with 136,879 people and average household incomes of $141,452 within a three-mile radius. The property sits on 33 acres in Mountain View, less than a half-mile from Caltrain in one of Silicon Valley's most vibrant, industrious communities. Frontages on El Camino Real, Showers Drive and California Avenue, along with access from San Antonio Road, create a "super block" around the property, providing unmatched points of access and signifying its superior connection to the surrounding community.".
"San Antonio's tenant line-up offers a balance of regional and local tenants alongside a mixed product offering. The combination allows a unique opportunity to meet the needs of the community and provides a steady consumer draw, seven days of the week," said Jeff Kreshek, Federal's Vice President of Leasing, West Coast. "The property holds a lot of additional, exciting opportunities to further improve the merchandising and drive rental growth as leases roll over the coming years."
Federal Realty incurred approximately $1.5 million of transaction related costs associated with the acquisition.
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, our mission is to deliver long term, sustainable growth through investing in densely populated, affluent communities where retail demand exceeds supply. Our 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 89 properties include over 2,400 tenants in approximately 20.1 million square feet of retail space and 1,500 residential units.
Federal Realty has paid quarterly dividends to its shareholders continuously since its founding in 1962, and has increased its dividend rate for 47 consecutive years, the longest record in the REIT industry. Federal Realty shares are traded on the NYSE under the symbol FRT. For additional information about Federal Realty and its properties, visit www.FederalRealty.com.
SOURCE Federal Realty Investment Trust