Federal Realty acquires two retail centres in Monmouth County, New Jersey
Federal Realty Investment Trust has acquired a controlling interest in two shopping centres totalling 285,600 square feet in affluent Monmouth County, New Jersey, for a total value of USD161m.
The Grove at Shrewsbury and Brook 35 are located on busy Route 35, less than three miles from the Garden State Parkway, serving the NY Metro emerging bedroom and second home communities of Shrewsbury, Red Bank, Rumson, Fair Haven, Little Silver and Middletown.
The acquisition was made using a combination of down REIT units, cash and the assumption of USD68m of fixed rate debt secured by the properties.
"These shopping centres have been at the top of our target list for over ten years. The location, tenancy, and productivity of these trophy centres, coupled with in place rents meaningfully below market, provide great visibility on long term growth," says Jim Taylor, executive vice president and chief financial officer at Federal Realty. "Our ability to use tax deferred currency and our long term relationship with the ownership group allowed us to avoid a marketed process. Also, we are confident that our newly formed partnership with Metrovation, which will retain a non-controlling partnership interest and provide ongoing property management services, will yield additional value creation opportunities in the Metro New York region."
The Grove at Shrewsbury is the trade area's dominant shopping destination with over 138,000 people and average household incomes of USD111,586 within the trade area. The Grove has over 40 national and regional tenants including lululemon, Brooks Brothers, Anthropologie, Pottery Barn, J.Crew, Banana Republic, and Williams-Sonoma. Constructed in 1988, the property sits on just over 25 acres on either side of Route 35 in Shrewsbury.
Approximately 15 miles to the south, Brook 35 serves a wealthy coastal trade area with very strong demographics, over 123,000 people with USD101,487 average household incomes within the trade area. The strong tenant mix of over 25 national and local retailers includes Ann Taylor, Banana Republic, Coach, and Williams-Sonoma. Built in 1998, the property sits on over 10 acres on either side of busy Route 35 in Sea Girt.
- By Category
- News from other sites
- Special Reports