Federal Realty acquires Alabama retail project The Summit for $508 million
This is the first sale in the history of The Summit. Federal Realty Investment Trust indicates that this transaction will bring Alabama's most visited retail destination into its portfolio and will immediately increase the value per share of FFO.
North Bethesda, Maryland, October 1, 2026 / PRNewswire / -- Federal Realty Investment Trust ( NYSE : FRT ) Today, we announce the acquisition of The Summit, Alabama's premier retail destination, for $508 million (with a net amount of $498 million).
The project was acquired from the original developer, covering an area of 100 acres with a building area of approximately 870,000 square feet. It is an open-air commercial property that took over 30 years to develop. According to Placer.ai data, this project is the most visited retail destination in Alabama, attracting nearly 9 million visitors annually, with a radius of influence extending up to 100 miles around it.
President and CEO Don Wood stated: "Assets that are truly irreplaceable and hold a dominant position, like The Summit, are not often available for purchase. We are very pleased to incorporate this property into our company's asset portfolio. This acquisition will immediately strengthen FFO and provide excellent opportunities to reset rents at market value over the next five years. It will also reinforce and expand our already strong relationships with retailers, which we can leverage to benefit many of our other assets. Adding The Summit to our series of assets that hold dominant positions in their respective markets—including Town Center Crossing in Leawood, Kansas; and and Plaza in Leawood, Kansas; Village Pointe in Omaha, Nebraska; Santana Row in San Jose, California; Assembly Row in Somerville, Massachusetts; and CocoWalk in Coconut Grove, Florida—will put the company in a very advantageous position for growth in the coming years."
The Summit is located in Birmingham, Alabama, at the intersection of Interstate 459 and U.S. Highway 280, situated between two of Birmingham's wealthiest communities: Mountain Brook and Vestavia Hills. The metropolitan area has a population of over 1.2 million, and the average household income within a 5-mile radius of the project is approximately $193,000.
The Summit has over 110 tenants, including Apple, Trader Joe, RH, Nordstrom Rack, Alo Yoga, Sephora, and North Italia. More than 30 of these tenants operate their sole stores in Alabama at this property. Aritzia, Reformation, and LoveShackFancy have recently signed leases, further solidifying The Summit as the preferred location for retailers entering Alabama. The current rental rate for this property is 92%, and several signed leases are expected to further increase the rental rate in the coming months.
The company expects that the long-term funding sources for this acquisition will include proceeds from asset sales, free cash flow, and proceeds from the convertible notes recently issued by the company.
With the addition of The Summit, the asset portfolio in the central region of Federal Realty now covers 7 properties, with a total area of approximately 2.7 million square feet, located in Chicago, Kansas City, Omaha, and Birmingham.
The company stated that a detailed overview of this acquisition can be found elsewhere.
About Federal Realty
Federal Realty is recognized as a leader in the field of high-quality retail property ownership, operation, and redevelopment. Its assets are primarily located in major coastal markets in the United States, as well as in regions with strong economic and demographic fundamentals and insufficient supply. Federal Realty was established in 1962, and its mission is to achieve long-term, sustainable growth by investing in communities where retail demand exceeds supply.
Its asset portfolio includes open-air shopping centers and multi-purpose destination projects such as Santana Row, Pike & Rose, and Assembly Row. These projects collectively demonstrate the company's ability to create unique, high-performing environments that become vibrant destinations for communities. Federal Realty owns 103 properties, comprising approximately 3,700 tenants, 28.8 million square feet of commercial space, and around 2,700 residential units.
Federal Realty has been increasing the quarterly dividend per share of common stock on an annualized basis for 59 consecutive years, setting the longest record in the REIT industry. Federal Realty is a component stock of the S&P 500 index, and its shares are traded on the New York Stock Exchange under the code FRT. For more information about Federal Realty and its properties, please visit www.federalrealty.com.
