Federal Realty Acquires The Summit in Alabama for $508 Million
Federal Realty Investment Trust (FRT) has acquired The Summit, a premier retail destination located in Birmingham, Alabama, for $508 million. This marks the first sale in The Summit's history and is expected to be immediately accretive to FFO per share. The property spans approximately 100 acres with around 870,000 square feet of open-air space and attracts nearly nine million annual visits from a broad trade area. The acquisition enhances Federal Realty’s portfolio by adding one of Alabama's most-visited retail centers in an affluent region near Birmingham. The Summit is home to over 110 tenants including major brands like Apple, Trader Joe's, Nordstrom Rack, and Sephora, with many operating as the only location for their brand within the state. With a current occupancy rate of 92%, recent lease commitments are expected to further increase this figure. The acquisition will be funded through asset sale proceeds, free cash flow, and convertible notes issued by Federal Realty. The addition expands its Central Region portfolio across Chicago, Kansas City, Omaha, and now Birmingham.
Topics: FFO accretion real estate acquisition retail development