#United States #Monterey #Federal Realty #Del Monte

Expansion of West Coast Presence

Federal Realty Investment Trust (FRT) recently announced its acquisition of the Del Monte Shopping Center, a prominent retail destination located in Monterey, California. This 674,000-square-foot shopping hub, which rests on 47 acres of prime real estate, was purchased for an impressive $123.5 million.

Location and Significance

The Del Monte Shopping Center stands out as the principal retail location within the Monterey Peninsula, enjoying a strategic position along Highway 1, a major commercial route in the area. Due to its prime location, it serves a broad trade area encompassing over 225,000 residents, making it the most frequented shopping center within a 15-mile radius. It ranks in the top 5% of retail venues nationwide based on foot traffic, as determined by Placer.ai.

Jan Sweetnam, Executive Vice President and Chief Investment Officer at Federal Realty, emphasized that the shopping center is a top-tier retail destination. The region is characterized by high-income households and is recognized as a leading leisure spot within the United States. This acquisition is seen as a strategic move to penetrate affluent yet underdeveloped markets. Sweetnam expressed enthusiasm about collaborating with aspirational retailers to enhance their presence in this thriving market.

Existing Tenants and Future Plans

Currently, the Del Monte Shopping Center is 83% leased, boasting prominent anchors such as Whole Foods. The center also includes high-performing brands like Apple, Sephora, Lululemon, Pottery Barn, and Anthropologie within its retail roster. Given Federal Realty's proven track record in managing and revitalizing major retail spaces, the company anticipates that strategic improvements in leasing, merchandising, and placemaking will further enhance the center’s appeal.

The Monterey market aligns with Federal Realty's successful property strategies implemented at other high-profile destinations, such as Barracks Road and Virginia Gateway. These locations have been effective “consolidator” shopping centers in smaller markets, appealing to affluent consumers across expansive trade areas.

Naveen Jaggi, the President of Retail Advisory Services at JLL, commented on Federal Realty's esteemed reputation in retail development. He noted that the acquisition of Del Monte Shopping Center will likely attract restaurants and retailers who previously may not have considered establishing a presence in the area.

About Federal Realty

Federal Realty Investment Trust has long been a leader in the ownership and redevelopment of high-quality retail-focused properties, primarily within major coastal markets ranging from Washington, D.C. to Boston, along with regions in California. Since its inception in 1962, the company has aimed to provide sustainable growth by investing in communities where the demand for retail spaces outstrips supply. Federal Realty's portfolio includes notable mixed-use developments like Santana Row in San Jose, Pike Rose in North Bethesda, and Assembly Row in Somerville.

In addition to its real estate success, Federal Realty has maintained an impressive streak of increasing dividends to its shareholders for 57 consecutive years—the longest record within the Real Estate Investment Trust (REIT) sector. With its shares traded on the NYSE under the symbol FRT, the company continues to prioritize the creation of vibrant and unique consumer experiences across its properties.

For more information about Federal Realty and its extensive portfolio, please visit www.federalrealty.com.