FEDERAL REALTY INVESTMENT TRUST ACQUIRES BETHESDA ROW IN BETHESDA, MD., AND DEDHAM PLAZA IN DEDHAM, MASS.
BETHESDA, Md., Jan. 3 /PRNewswire/ -- Federal Realty Investment Trust (NYSE: FRT) announced today that it has acquired a long-term leasehold interest in Bethesda Row located in Bethesda. The total term of the lease, including options is 95 years. The trust's initial investment included a $5.5 million security deposit used by the lessor to purchase directly from the trust, 220,000 common shares of Federal Realty stock valued at $24 3/4 per share. Bethesda Row properties are located one block west of Federal Realty's home office in the Bethesda central business district. The properties front on Arlington Road, Bethesda Avenue and Woodmont Avenue -- heavily traveled roadways leading into and around Bethesda's central business district. Bethesda Row is bordered to the north and east by commercial development and to the south and west by the affluent Bethesda residential community. Median household income within a 3 mile radius of the center exceeds $83,000. Bethesda Row consists of seven buildings totaling 223,000 square feet; 154,000 square feet of retail and 69,000 square feet of office space. The tenancy is comprised primarily of convenience/service, restaurant and specialty tenants anchored by Giant Food (23,000 square feet) and Giant Pharmacy (21,000 square feet). Other tenants include Blockbuster Video, Zia Mia Restaurant, Trak Auto, Chicken Out and Quartermaine's Coffee Roasters. Occupancy is currently 94 percent. Federal Realty has an absolute right to purchase the properties any time after 39 years and prior to that time, has complete control over the day-to-day operations and future direction of the properties. The trust also announced today that it has acquired Dedham Plaza in Dedham, Mass., for $24,712,500 in cash. Dedham Plaza is located in the town of Dedham, approximately 10 miles southwest of downtown Boston. The center is located on the Boston-Providence Turnpike (U.S. Route 1), a major commuting thoroughfare that runs north-south into Boston, and lies just three-fourths of 1 mile north of Route 128/Interstate 95. The 247,000 square foot shopping center was constructed in 1959. Anchor tenants include Ames, Cherry Webb Touraine Department Store, Pier 1 Imports and Woolworth's. Other tenants include Eastern Mountain Sports and Coconuts Records. The center is currently 99 percent leased. Robert S. Wennett, vice president of acquisitions for the trust, stated that both of these transactions represent unique opportunities. Bethesda Row is one of the most significant retail properties in the Bethesda market. Given the property's strategic location and strong demographics, Bethesda Row has been able to attract and retain quality retailers. Through expansion and remerchandising, the trust will seek to further improve the tenancy and the overall performance of the property. Wennett also noted that Dedham Plaza is the company's first acquisition in the Boston market. He stated that the trust has targeted the Boston metropolitan area since the early 1980's and is pleased to make its initial entry with the purchase of this dominant, strategically located center. The trust has identified additional investment opportunities and is optimistic that the trust will be successful in acquiring other quality shopping centers in the Boston market. The trust also announced that during 1993, the trust purchased six properties and acquired a leasehold interest representing an aggregate of 1.5 million square feet of leasable space. The aggregate purchase price of the six acquisitions was $102 million. The trust currently owns 48 shopping centers located primarily in the Mid-Atlantic region between the New York metropolitan area and Richmond, Va. Federal Realty specializes in the acquisition of older, well-located centers which can be enhanced through renovation, expansion, redevelopment and re-merchandising programs. -0- 1/3/94 /CONTACT: Robert S. Wennett, vice president-acquisitions of Federal Realty Investment Trust, 301-652-3360/ (FRT)
CO: Federal Realty Investment Trust ST: Maryland, Massachusetts IN: FIN SU: TNM RLE
DC-IH -- DC010 -- 8549 01/03/94 14:22 EST
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|Date:||Jan 3, 1994|
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