Federal Realty Expands West Coast Presence with Acquisition of Del Monte Shopping Center

Market-Dominant Retail Destination in High-Income Regional Market

N. BETHESDA, Md., Feb. 26, 2025 /PRNewswire/ — Federal Realty Investment Trust (NYSE:FRT) has acquired Del Monte Shopping Center, a 674,000-square-foot, 47-acre, grocery-anchored lifestyle center in Monterey, California, for $123.5 million. As the dominant retail destination on the Monterey Peninsula, Del Monte Shopping Center is uniquely positioned on Highway 1—the region’s major commercial and commuter spine. The property serves a trade area of over 225,000 residents and is the region’s most visited retail center within a 15-mile radius. It ranks in the nation’s top 5% of all shopping centers for annual foot traffic, according to Placer.ai.

“Del Monte Shopping Center is the premier retail destination of the Monterey Peninsula, an area characterized by strong incomes and home to one of the most affluent leisure destinations in the US,” said Jan Sweetnam, Executive Vice President, Chief Investment Officer at Federal Realty. “This acquisition aligns with Federal Realty’s strategy to expand into affluent but underserved markets. We look forward to capitalizing on our deep relationships with aspirational retailers looking to expand and enter new markets with a partner who has a history of delivering great places and strong sales.”

Currently 83% leased, Del Monte Shopping Center is anchored by Whole Foods and features high-performing retailers such as Apple, Sephora, Lululemon, Pottery Barn, and Anthropologie. With a proven track record of owning, managing, and transforming market-dominant centers, Federal Realty anticipates creating value at Del Monte through strategic lease-up, merchandising, and placemaking enhancements. The Monterey market and the company’s property enhancement strategy align with assets like Barracks Road and Virginia Gateway—highly successful and dominant retail destinations in smaller markets, serving affluent customers in expansive trade areas as their regions’ “consolidator” shopping centers.

“Federal Realty has an elite reputation among retailers and intermediaries like us, particularly when it comes to delivering an exceptional retail experience that appeals to the more affluent customer in search of elevated brands and offerings,” said Naveen Jaggi, President, Retail Advisory Services at JLL. “Their acquisition of Del Monte in Monterey will undoubtedly pique the interest of restaurants and retailers that wouldn’t have been as enthusiastic before.”

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 from Washington, D.C. to Boston as well as Northern and Southern California. Founded in 1962, Federal Realty’s mission is to deliver long-term, sustainable growth through investing in communities where retail demand exceeds supply. Its expertise includes creating urban, mixed-use neighborhoods like Santana Row in San Jose, California, Pike & Rose in North Bethesda, Maryland and Assembly Row in Somerville, Massachusetts. These unique and vibrant environments that combine shopping, dining, living and working provide a destination experience valued by their respective communities. Federal Realty’s 102 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. Federal Realty 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.

 

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SOURCE Federal Realty Investment Trust