KINGSTOWNE, VA – Owner, operator and redeveloper of retail properties, Federal Realty Investment Trust has acquired the retail destination Kingstowne Towne Center in Kingstowne, VA for $200 million. The firm purchased the property from the Halle Cos.
Federal Realty Investment Trust has closed on the first $100 million phase of the two-phase acquisition. The firm expects to close on phase two in July, subject to customary closing conditions.
The acquired property comprises 410,000 square feet of retail space on 45 acres of land. It is currently 97% leased to a mix of tenants that includes anchors Safeway and Giant, as well as T.J. Maxx, Ross, HomeGoods.
Federal Realty Investment Trust plans to increase the property’s value in the coming years through remerchandising and incremental capital investment.
Located in Virginia’s Fairfax County, Kingstowne Towne Center is part of a one-million-square-foot regional retail node that attracts 8.3 million visits annually. Situated near TSA’s new headquarters, the center serves as one of Virginia’s most visited retail destinations.
“Kingstowne Towne Center, with its attractive demographics and significant barriers to entry, is reflective of our Northern Virginia growth strategy, and further demonstrates our corporate commitment to seizing value-enhancing opportunities,” says Deirdre M. Johnson, SVP of asset management at Federal Realty Investment Trust.
Johnson adds, “Offering a convenient and walkable format, and more than 60 diverse retail and dining options, the center already possesses strong fundamentals. We look forward to bringing an elevated experience to the local community and further expanding our presence in the area as part of our long-term regional strategy.”
Fairfax County Lee District Supervisor, Rodney L. Lusk states, “I am excited about Federal Realty’s investment in the retail component of Kingstowne Towne Center. Federal Realty is a premier developer that has successfully repositioned retail properties across the region. I look forward to working with Federal Realty to unlock the potential of the Towne Center.”
Avison Young capital markets team, led by principals Dean Sands and Chip Ryan, represented the seller in the transaction.
The acquisition aligns with Federal Realty Investment Trust strategy to grow its Northern Virginia portfolio. The firm recently acquired of Twinbrooke Shopping Centre in Fairfax, VA and Chesterbrook in McLean, VA, and it recently renovated of Birch & Broad in Falls Church, VA.
With the purchase of Kingstowne Towne Center, the company now owns and operates more than four million square feet of real estate in Virginia.