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Federal Realty Acquires Seven Retail Properties in Los Angeles County for $345 Million

Venture with Primestor Development Includes Retail Properties Serving the Urban Latino Communities
August 7, 2017
Federal Realty Investment Trust (NYSE: FRT) has acquired a majority interest in five community shopping centers, one center under redevelopment and a 25% interest in a seventh center from Primestor Development, Inc. for $345 million.

Rockville, MD-based Federal Realty holds a 90% interest in the properties, which total 1.3 million square feet covering 114 acres through a joint venture with Primestor, which will continue to lease and manage the properties with oversight from FRT's investment committee, which will also include Primestor co-founder Arturo Sneider.

Sneider and Leandro Tyberg founded Primestor in 1992, building what is widely recognized to be the leader and innovator in mainstream retail product aimed at the largely underserved and fast growing Latino population.

The $345 million price includes $20 million to complete the redevelopment of one of the centers, which include properties in South Gate, South El Monte, Sylmar, Bell Gardens and Pacoima.

The properties include the following:

  • Azalea Shopping Center, 4651-4687 Firestone Blvd., South Gate, CA
    247,631-SF power center built in 2014

  • Bell Gardens Marketplace, 6811-7121 Eastern Ave., Bell Gardens, CA, 152,931 SF community center built in 1990

  • Plaza Pacoima (three properties), 13510, 13520, 13550 Paxton St., Pacoima, CA. Include 45,650-SF freestanding power center occupied by Best Buy built in 2009; 4,320-SF freestanding retail building built in 2010; and 154,000 SF freestanding Costco building built in 2010

  • Plaza Del Sol, 1832 Durfee Ave., South El Monte, CA; 51,379 SF freestanding community shopping center built in 1945

  • Sylmar Towne Center, 12629-12717 Glenoaks Blvd., Sylmar, CA; 132,543 SF neighborhood center built in 1974 and renovated in 1992; 800-10,224 SF available for lease

    "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," said Jeff Berkes, president of Federal Realty on the West Coast. "There are few, if any, comparable competing properties in these incredibly dense trade areas surrounding these centers."

    Tenants in the centers include extremely productive stores operated by Ross, Marshalls, and Kroger's Food 4 Less that fit well into Federal's portfolio, Berkes added.

    Please see CoStar COMPs #3970707 for more information on the transaction.
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