ROCKVILLE, Md., Aug. 3, 2017 /PRNewswire/ -- Federal Realty Investment Trust (NYSE: FRT) is pleased to announce the closing of a new joint venture with Primestor Development Inc. (www.Primestor.com), the Los Angeles based owner and developer of premier retail properties serving the urban Latino communities of Southern California. Additional information about the joint venture and the properties is available in a presentation posted under "News and Events" on the homepage of our website, www.federalrealty.com. The Trust holds approximate 90% interest in the venture. The venture is seeded with a 100% interest in five dominant community shopping centers, plus one center under redevelopment and a 25% minority interest in a seventh shopping center. These seven properties total over 1.3 million square feet on 114 acres of urban land. The Trust's investment in the venture is approximately $345 million which includes a $20 million commitment to complete the redevelopment of one of the centers.
"We know that retail real estate value is best created in places where demand exceeds supply and with only 6.6 square feet of shopping center product per capita in the three miles surrounding these properties, there is far less supply than the national average and there are few, if any, comparable competing properties in these incredibly dense trade areas surrounding these centers," said Jeff Berkes, President Federal Realty West Coast. "The retail tenancy in the centers include extremely productive stores operated by Ross, Marshalls, and Kroger's Food 4 Less that fit well into Federal's portfolio," Mr. Berkes concluded.
Primestor will continue to lease and manage the centers with oversight from Federal's investment committee which will also include Primestor co-Founder, Arturo Sneider. Primestor was founded by Arturo Sneider and Leandro Tyberg in 1992; they have built what is widely recognized to be the leader and innovator in mainstream retail product serving the largely underserved and fast growing Latino population.
"We couldn't be more thrilled to partner with such a well-respected and like-minded group of real estate professionals who share our passion for community based experiential retail in densely populated markets," said Don Wood, Federal Realty's President and Chief Executive Officer. "Our hope and belief is that through shared knowledge and relationships, this venture will grow in Southern California and other national markets where Federal Realty has a significant footprint."
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 105 properties include over 2,800 tenants, in approximately 24 million square feet, and over 1,800 residential units.
Federal Realty has paid quarterly dividends to its shareholders continuously since its founding in 1962, and has increased its dividend rate for 50 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.
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SOURCE Federal Realty Investment Trust