Federal Realty Completes Sale of Levare Apartments at Santana Row
Federal Realty Investment Trust (NYSE:FRT) has sold Levare, a 108-unit Class A residential building at Santana Row in San Jose, California, for $74 million. The property, delivered in 2011 and 95% leased at sale, was disposed of as part of the company's strategy to reallocate capital toward higher-return opportunities.
Santana Row, Silicon Valley's premier mixed-use destination, spans over 2.5 million square feet featuring retail, office, residential, and hotel spaces. The development includes 50+ shops, 30 restaurants, 662 rental homes, 219 condominiums, a 215-key hotel, and approximately 1 million square feet of Class A office space, attracting over 8.5 million annual visits.
Federal Realty Investment Trust (NYSE:FRT) ha venduto Levare, un edificio residenziale di Classe A con 108 unità situato a Santana Row, San Jose, California, per 74 milioni di dollari. La proprietà, consegnata nel 2011 e locata al 95% al momento della vendita, è stata ceduta nell'ambito della strategia aziendale di riallocare il capitale verso opportunità con rendimenti più elevati.
Santana Row, la principale destinazione a uso misto della Silicon Valley, si estende su oltre 2,5 milioni di piedi quadrati e comprende spazi commerciali, uffici, residenziali e alberghieri. Lo sviluppo include più di 50 negozi, 30 ristoranti, 662 abitazioni in affitto, 219 condomini, un hotel con 215 camere e circa 1 milione di piedi quadrati di uffici di Classe A, attirando oltre 8,5 milioni di visitatori all'anno.
Federal Realty Investment Trust (NYSE:FRT) ha vendido Levare, un edificio residencial de Clase A con 108 unidades en Santana Row, San José, California, por 74 millones de dólares. La propiedad, entregada en 2011 y con un 95% de ocupación al momento de la venta, se vendió como parte de la estrategia de la compañía para reasignar capital hacia oportunidades con mayores retornos.
Santana Row, el principal destino de uso mixto del Silicon Valley, abarca más de 2.5 millones de pies cuadrados e incluye espacios comerciales, oficinas, residenciales y hoteleros. El desarrollo cuenta con más de 50 tiendas, 30 restaurantes, 662 viviendas en alquiler, 219 condominios, un hotel de 215 habitaciones y aproximadamente 1 millón de pies cuadrados de oficinas de Clase A, atrayendo más de 8.5 millones de visitas anuales.
Federal Realty Investment Trust (NYSE:FRT)는 캘리포니아 산호세의 산타나 로우에 위치한 108가구 규모의 클래스 A 주거용 건물인 레바레를 7,400만 달러에 매각했습니다. 2011년에 완공되어 매각 시점에 95% 임대된 이 부동산은 회사가 자본을 더 높은 수익 기회로 재배분하기 위한 전략의 일환으로 처분되었습니다.
실리콘밸리 최고의 복합용도 지역인 산타나 로우는 250만 평방피트 이상의 면적에 소매, 사무실, 주거 및 호텔 공간을 포함합니다. 이 개발지구에는 50개 이상의 상점, 30개의 레스토랑, 662개의 임대 주택, 219개의 콘도미니엄, 215실 규모의 호텔, 약 100만 평방피트의 클래스 A 오피스 공간이 포함되어 연간 850만 명 이상의 방문객을 끌어들입니다.
Federal Realty Investment Trust (NYSE:FRT) a vendu Levare, un immeuble résidentiel de Classe A de 108 unités situé à Santana Row, San Jose, Californie, pour 74 millions de dollars. La propriété, livrée en 2011 et louée à 95 % au moment de la vente, a été cédée dans le cadre de la stratégie de l'entreprise visant à réallouer le capital vers des opportunités à plus haut rendement.
Santana Row, la principale destination à usage mixte de la Silicon Valley, s'étend sur plus de 2,5 millions de pieds carrés et comprend des espaces commerciaux, de bureaux, résidentiels et hôteliers. Le développement comprend plus de 50 boutiques, 30 restaurants, 662 logements locatifs, 219 condominiums, un hôtel de 215 chambres et environ 1 million de pieds carrés de bureaux de Classe A, attirant plus de 8,5 millions de visiteurs annuels.
Federal Realty Investment Trust (NYSE:FRT) hat Levare, ein 108-Einheiten umfassendes Wohngebäude der Klasse A in Santana Row, San Jose, Kalifornien, für 74 Millionen US-Dollar verkauft. Die Immobilie, die 2011 fertiggestellt wurde und zum Verkaufszeitpunkt zu 95 % vermietet war, wurde im Rahmen der Strategie des Unternehmens veräußert, Kapital in renditestärkere Möglichkeiten umzuschichten.
Santana Row, das führende gemischt genutzte Ziel im Silicon Valley, erstreckt sich über mehr als 2,5 Millionen Quadratfuß und bietet Einzelhandels-, Büro-, Wohn- und Hotelflächen. Die Entwicklung umfasst über 50 Geschäfte, 30 Restaurants, 662 Mietwohnungen, 219 Eigentumswohnungen, ein Hotel mit 215 Zimmern und etwa 1 Million Quadratfuß Bürofläche der Klasse A und zieht jährlich über 8,5 Millionen Besucher an.
- Sale of Levare apartments for $74 million enables capital reallocation to higher-return opportunities
- Property maintained strong 95% occupancy rate at time of sale
- Transaction demonstrates ability to monetize mature assets at optimal timing
- Santana Row continues to show sustained demand across asset classes with 8.5 million annual visits
- Reduction in rental income stream from the disposed property
- Loss of exposure to the strong San Jose multifamily market through this asset
Insights
FRT monetizes mature asset at Santana Row for $74M, demonstrating capital recycling strategy while maintaining control of prime mixed-use development.
Federal Realty's $74 million sale of the Levare apartment building represents strategic capital recycling at work. At 108 units with 95% occupancy, this 14-year-old Class A property has likely reached optimal valuation in its lifecycle. The
What's particularly significant is how this transaction aligns with REIT best practices. Rather than holding stabilized assets indefinitely, Federal is selectively harvesting mature properties while maintaining control of the broader 2.5 million square foot Santana Row mixed-use ecosystem. This preserves their dominant position in this high-traffic Silicon Valley destination (with 8.5 million annual visits) while freeing capital for potentially higher-yield deployments.
The transaction demonstrates that despite broader market uncertainties, prime assets in irreplaceable locations still command institutional interest. The sale doesn't diminish Federal's Santana Row footprint substantially, as they retain 662 rental homes and 1 million square feet of Class A office space within the development.
This disciplined approach to capital recycling should enhance Federal's financial flexibility while potentially improving overall portfolio returns - exactly what sophisticated REITs should be doing at this point in the real estate cycle.
Disposition of stabilized asset reinforces long-term value creation strategy
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Delivered in 2011, Levare has played a meaningful role in the evolution of Santana Row and reached a point in its lifecycle where Federal Realty could monetize its value and reallocate capital toward higher-return opportunities. The property was
"This transaction reflects our ability to unlock value at the right time and put capital to work where we see the greatest long-term upside," said Jan Sweetnam, Executive Vice President, Chief Investment Officer at Federal Realty. "It's a great example of our broader focus on maximizing returns while continuing to elevate high-performing assets like Santana Row."
"Levare represents the type of high-quality, well-located multifamily asset that continues to draw strong institutional interest, even in a selective investment environment," said Will Purcell, Director at Eastdil Secured. "Its location within Santana Row—one of the most vibrant and proven mixed-use destinations in the country—made it a particularly compelling offering."
Santana Row is Silicon Valley's most prominent mixed-use destination, encompassing more than 2.5 million square feet across retail, office, residential, and hotel uses in
About Federal Realty
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.
Investor Inquiries: Jill Sawyer Senior Vice President, Investor Relations 301.998.8265 | Media Inquiries: Brenda Pomar Senior Director, Corporate Communications 301.998.8316 |
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SOURCE Federal Realty Investment Trust
FAQ
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