Federal Realty Acquires Annapolis Town Center, Advancing Disciplined Acquisition Strategy

Rhea-AI Summary

Federal Realty (NYSE: FRT) announced the acquisition of Annapolis Town Center on October 10, 2025 for $187 million. The property is a 480,000-square-foot open-air shopping destination anchored by Whole Foods and shadow-anchored by Target, and includes Life Time and national specialty brands.

The center sits in an affluent trade area in the Washington–D.C./Baltimore region and is expected to fit Federal's strategy of dominant, well-located retail assets. The release highlights recent leasing momentum at several recent acquisitions, citing multiple signed or in-process leases (examples: 10 leases/80,000 SF at Town Center Plaza; 25 leases/140,000 SF at Virginia Gateway).

Positive

• $187 million acquisition expands portfolio with a 480,000 SF dominant retail asset
• Anchored by Whole Foods and shadow-anchored by Target, plus premium national tenants
• Cites measurable leasing momentum: 10 leases/80,000 SF and 25 leases/140,000 SF at recent acquisitions

Negative

• There is no guarantee that leases in active negotiation will be signed
• Company states timing and performance vary by property, creating execution risk

Insights

Portfolio Strategist

Federal Realty paid $187 million for a dominant 480,000-SF open-air center, extending its strategy of buying well-located, income-rich retail assets.

The acquisition of Annapolis Town Center on Oct. 10, 2025 adds a 480,000-square-foot asset anchored by Whole Foods and shadow-anchored by Target, plus complementary national retailers and a Life Time club. This fits the stated playbook of buying irreplaceable, high-income-trade-area retail properties and expands the portfolio scale in the Washington–D.C./Baltimore market.

Key dependencies include successful operational improvements and active merchandising to realize value from the asset; the press release lists near- and long-term operational levers but provides no concrete capex or pro forma rent figures. Watch leasing momentum and realized rent growth across the asset over the next 12–24 months, plus any disclosed spending plan tied to the property, to judge whether the acquisition converts to measurable cashflow uplift.

Leasing & Operations Expert

Recent leasing activity across Federal's acquisitions signals repeatable execution that could accelerate income growth at Annapolis Town Center.

Federal highlights rapid lease flow at recent buys (multiple properties with tens of thousands of square feet signed or in negotiation through 9/30/2025), indicating an operating playbook that prioritizes active remerchandising and tenancy upgrades. The Annapolis asset benefits from high-profile anchors and a curated brand mix, which typically supports higher shopper draw and rent resilience when leasing is executed effectively.

Risks include deal conversion for leases currently "in-process" and timing differences between signed leases and cash rent recognition. Monitor lease execution rates and any disclosure of rent per square foot or new tenant concessions over the next 12 months to assess whether the announced leasing momentum translates into tangible NOI improvement.

Acquisition extends portfolio of dominant retail assets; recent leasing momentum underscores Federal's strong execution

NORTH BETHESDA, Md., Oct. 13, 2025 /PRNewswire/ -- Federal Realty Investment Trust (NYSE: FRT) today announced the $187 million acquisition of Annapolis Town Center, a dominant, 480,000-square-foot open-air shopping destination in Anne Arundel County, Maryland on October 10, 2025. Anchored by a high-volume Whole Foods, shadow-anchored by Target, the center also features a Life Time luxury athletic club and a curated mix of national brands such as Anthropologie, Sephora, Restoration Hardware, and Williams Sonoma. Situated in one of the most affluent, well-connected trade areas in the Washington, D.C.–Baltimore region, the property benefits from high household incomes, strong retail fundamentals, and direct access to major regional corridors – all consistent with Federal's strategic investment criteria.

"This is exactly the kind of opportunity we target: a dominant asset with strong fundamentals, competitive positioning, and the potential to unlock further value under our ownership," said Don Wood, President & CEO of Federal Realty. "The traction we've seen across our other recent acquisitions gives us confidence in both our disciplined approach and our ability to scale strategically."

The acquisition of Annapolis Town Center extends Federal's strategy of investing in dominant, well-located retail centers with attractive demographics and value-creation potential. The asset presents both near- and long-term opportunities to drive performance through operational improvements, active merchandising, and capital investment. For an aerial image of Annapolis Town Center, click here.

Annapolis Builds on Recent Track Record of Dominant Asset Acquisitions

Recent acquisitions have demonstrated sustained leasing momentum, rent growth, and strong operational execution, reinforcing Federal's ability to create value through strategic execution and active portfolio management.¹

• Town Center Plaza and Town Center Crossing (Leawood, KS; acquired July 2025): Just months after acquisition, Federal has 10 leases totaling 80,000 square feet executed or in-process, including LEGO, Local Lime, and a Coach location featuring the brand's new café concept, with additional deals underway.
• Virginia Gateway (Gainesville, VA; acquired May  2024): Since acquisition, Federal has 25 leases totaling 140,000 square feet executed or in-process, highlighted by Sephora, Warby Parker, and South Block, along with a range of specialty food and service providers. 
• Shops at Pembroke Gardens (Pembroke Pines, FL; acquired July 2022): Since acquisition, Federal has 29 leases totaling more than 119,000 SF executed or in-process, including Lululemon, Anthropologie, Kendra Scott, and Coach. 
• Kingstowne Towne Center (Alexandria, VA; acquired April-July 2022): Through targeted remerchandising, the team has introduced South Block and Lazy Dog, expanded Starbucks, and added new service providers, with 28 leases signed to date totaling 60,000 square feet.
• Camelback Colonnade (Phoenix, AZ; acquired June 2021): Through targeted remerchandising and creative space utilization, Federal has executed14 leases totaling 94,000 square feet, including HomeGoods, coworking operator Kiln, and a new Hawaiian Bros drive-thru pad now under construction. Kiln's addition helped activate and monetize previously underutilized upper-level space.

Across these recent acquisitions, Federal has demonstrated consistent value creation through higher rents, strong tenant demand, and disciplined execution. While timing and performance vary by property, each reflects the same investment standards: irreplaceable real estate, income-rich trade areas, and a clear path to long-term value creation.

___________________________________ 1 All leasing information below includes new and renewal leases signed or in active lease negotiation since acquisition of the property through 9/30/2025.  There can be no guarantee that deals that are currently in active negotiation will ultimately be signed.

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. Federal Realty's 102 properties include approximately 3,500 tenants in 27 million commercial square feet, and approximately 3,000 residential units. 

Federal Realty has increased its quarterly dividends to its shareholders for 58 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
jsawyer@federalrealty.com 

Media Inquiries:
Brenda Pomar
Senior Director, Corporate Communications
301.998.8316 
bpomar@federalrealty.com 

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SOURCE Federal Realty Investment Trust

FAQ

What did Federal Realty (FRT) pay for Annapolis Town Center and when was the deal completed?

Federal Realty completed the Annapolis Town Center acquisition on October 10, 2025 for $187 million.

How large is Annapolis Town Center and which major anchors support the property?

Annapolis Town Center is a 480,000-square-foot open-air center anchored by Whole Foods and shadow-anchored by Target.

How does the Annapolis acquisition fit Federal Realty's strategy (FRT)?

The company says the property fits its strategy of buying dominant, well-located retail centers in income-rich trade areas to create long-term value.

What leasing performance examples did Federal Realty cite to support its acquisition strategy?

Federal highlighted recent results including 10 leases totalling 80,000 SF at Town Center Plaza and 25 leases totalling 140,000 SF at Virginia Gateway since acquisition.

Does Federal Realty guarantee that active lease negotiations will close at Annapolis Town Center?

No — the company explicitly notes there is no guarantee that deals currently in active negotiation will ultimately be signed.

What near-term value opportunities did Federal Realty identify for Annapolis Town Center?

The company identified operational improvements, active merchandising, and capital investment as near- and long-term opportunities to drive performance.