Federal Realty Expands Its Retail Portfolio with Annapolis Town Center Acquisition

On October 10, 2025, Federal Realty Investment Trust announced a significant milestone in its disciplined acquisition strategy. The company acquired the Annapolis Town Center for a notable $187 million. This impressive open-air shopping destination spans 480,000 square feet and is located in Anne Arundel County, Maryland. The Town Center is anchored by a high-traffic Whole Foods, with a Target store shadow-anchoring the facility. It also features high-end brands such as Anthropologie, Sephora, Restoration Hardware, and Williams Sonoma, catering to a demographic with high disposable income.

According to Don Wood, President and CEO of Federal Realty, "This is exactly the kind of opportunity we target: a dominant asset with strong fundamentals, competitive positioning, and potential to unlock further value under our ownership." This acquisition aligns perfectly with Federal's strategic investment goals, aiming to tap into high-income trade areas that demonstrate solid retail fundamentals.

Annapolis Town Center benefits significantly from its prime location, which hosts affluent households and provides direct access to major regional corridors, a feature consistent with Federal's investment criteria. The site is part of a thriving economic area that includes many successful retail ventures, making it an opportune addition to Federal's diverse portfolio.

Recent Performance and Future Prospects

The acquisition not only enhances Federal's portfolio but is also expected to create value through various strategic initiatives. The company has demonstrated a strong track record of successfully increasing leasing momentum and rent growth across its previous acquisitions. For instance, just months after acquiring Town Center Plaza in Leawood, Kansas, Federal signed ten leases totaling 80,000 square feet, featuring brands like LEGO and Coach.

Furthermore, since acquiring Virginia Gateway in Gainesville, VA, Federal has successfully executed leases totaling 140,000 square feet, landing notable tenants such as Sephora and Warby Parker. Each acquisition adds to Federal's ability to attract high-profile tenants and generate consistent revenue streams.

Federal Realty's recent acquisitions aren't only about growth; they emphasize enhancing existing properties through operational improvements and strategic capital investments. This approach has proven effective for properties like the Shops at Pembroke Gardens in Florida and Kingstowne Towne Center in Alexandria, VA, where the company has introduced successful new brands and services.

A Commitment to Sustainable Growth

Founded in 1962, Federal Realty is well-regarded for owning and redeveloping high-quality retail properties primarily located in major coastal markets. The company's mission focuses on delivering long-term, sustainable growth by investing in communities where retail demand exceeds supply. With over 3,500 tenants across 102 properties, Federal Realty is committed to creating dynamic spaces that serve communities well.

With the acquisition of Annapolis Town Center, Federal Realty further cements its position as a leader in the retail real estate sector. As shown by its history of increasing dividends for 58 consecutive years and maintaining its status as an S&P 500 member, the trust continues to showcase its prowess in strategic market positioning and future growth possibilities. For more insights about Federal Realty and their ongoing initiatives, visit their official website.