Federal Realty Completes Johnson County, KS Acquisition; Advances Capital Allocation Strategy
Transactions drive earnings accretion and enhance portfolio quality
N. BETHESDA, Md., July 9, 2025 /PRNewswire/ -- Federal Realty Investment Trust (NYSE:FRT) today announced a series of transactions as part of its ongoing capital allocation strategy, focused on deploying capital and recycling mature assets to enhance portfolio quality and drive long-term value creation.
Highlights include:
- The acquisition of Town Center Plaza and Town Center Crossing, two dominant open-air retail centers in Leawood, Kansas, totaling 550,000 square feet, for $289 million.
- The sale of the Hollywood Boulevard retail portfolio in Los Angeles, totaling 181,000 square feet, for $69 million.
- The commencement of construction this summer of Lot 12, a 258-unit residential project at Santana Row in San Jose.
"These strategic moves demonstrate how we thoughtfully unlock value and redeploy capital to drive growth," said Don Wood, President & Chief Executive Officer of Federal Realty. "We're entering Leawood, Kansas—an affluent, high-growth market—while crystallizing the value of mature, high-quality assets like our Hollywood retail property and the recent sale of our Levare residential building at Santana Row. At the same time, we're reinvesting right back into Santana Row with a new residential development that continues to strengthen Santana's position as one of the country's premier mixed-use destinations."
Further details on these transactions and development activity are outlined below.
Expansion into Johnson County, Kansas
On July 1, Federal acquired Town Center Plaza and Town Center Crossing, two dominant open-air retail centers positioned at the premier retail intersection in Leawood, Kansas, totaling 550,000 square feet, for $289 million in cash.
Located in Johnson County, one of the Kansas City metro's most affluent and fast-growing submarkets for population and job growth, the centers serve a trade area of over 600,000 residents and include top-performing locations for Trader Joe's, Apple, lululemon, Sephora, Anthropologie, and several Williams Sonoma brands.
The acquisition aligns with Federal's expansion strategy, targeting market-dominant assets in supply-constrained markets with strong job growth, robust demographics, and clear demand from leading retailers. In-place rents are estimated to be well below market rents, allowing for potential meaningful value creation over time.
"Johnson County's growth has been on our radar for some time, and we've had clients waiting for the right opportunity to enter the market," said Carren Coston, Partner at Bond RP. "Federal's acquisition positions them at a critical intersection within one of the region's most sought-after retail corridors—and in our view, they are a best-in-class landlord."
A detailed overview of the acquisition is available here.
Disciplined Capital Recycling
Federal continues to actively recycle capital through the sale of mature assets where it has realized significant embedded value.
- On June 23, it closed on the sale of its 181,000-square-foot Hollywood Boulevard retail portfolio in Los Angeles, for $69 million.
- This follows the recently announced $74 million sale of Levare at Santana Row, a 108-unit peripherally located residential product at a strong valuation.
These transactions demonstrate the company's ability to unlock value from seasoned assets, and strategically reallocate capital toward opportunities with stronger long-term return potential. Federal has identified over $1 billion of potential dispositions across select stabilized retail properties, as well as office and residential assets that are not fully integrated within major mixed-use properties.
Advancing High-Value Development
Capital is being strategically redeployed to further densify Santana Row—an irreplaceable, mixed-use asset with a proven track record of durable demand and long-term value creation.
- Construction begins this summer on Lot 12, a 258-unit residential project with an expected total investment of approximately $145 million. The successful sale of Levare highlights the depth of institutional demand for high-quality residential at Santana Row and positions Federal to capitalize on that strength through this next phase of growth.
Updates on previously announced development include:
- A 45-unit residential building with ground-floor retail has commenced construction on Washington Street in Hoboken, NJ, where early retail leasing demand is exceeding expectations. The project is expected to deliver in 2027.
- Federal's 217-unit multifamily project in Bala Cynwyd, PA topped out last quarter and remains on track and under budget for a mid-2026 delivery.
"These residential projects illustrate our disciplined approach to advancing development where demand, differentiation, and long-term economics align," said Wood. "Together with our broader transactional activity, these capital allocation decisions are not only accretive to earnings and elevate the quality of our portfolio but also lay the groundwork for durable, meaningful growth. And importantly, both our acquisition and development pipelines remain robust—ensuring we continue to unlock compelling opportunities going forward."
About Federal Realty
Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail-based properties located primarily in major coastal markets and select underserved regions with strong economic and demographic fundamentals. Founded in 1962, Federal Realty's mission is to deliver long-term, sustainable growth through investing in communities where retail demand exceeds supply. This includes a portfolio of open-air shopping centers and mixed-use destinations—such as Santana Row, Pike & Rose and Assembly Row—which together reflect the company's ability to create distinctive, high-performing environments that serve as vibrant destinations for their communities. As of 3/31/2025, Federal Realty's 103 properties include approximately 3,500 tenants in 27 million commercial square feet, and approximately 3,100 residential units.
Federal Realty has increased its quarterly dividends to its shareholders for 57 consecutive years, the longest record in the REIT industry. The company is an S&P 500 index member and its shares are traded on the NYSE under the symbol FRT. For additional information about Federal Realty and its properties, visit www.federalrealty.com.
Investor Inquiries:
Jill Sawyer
Senior Vice President, Investor Relations
301.998.8265
[email protected]
Media Inquiries:
Brenda Pomar
Senior Director, Corporate Communications
301.998.8316
[email protected]
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SOURCE Federal Realty Investment Trust