Bowie Grocery-Anchored Center Trades for $72M
This was a non-core asset for Federal Realty Investment Trust.
ROCKVILLE, MD—Federal Realty Investment Trust has sold a grocery-anchored retail center in Bowie, Md., for $72 million. New Market Properties, a wholly-owned subsidiary of Preferred Apartment Communities is the buyer of the 264,000-square foot center that is anchored by Giant Food. New Market paid for the asset in cash.
In addition to Giant Food, tenants also include TJ Maxx, Ross and Tuesday Morning.
The transaction was part of Federal Realty’s larger capital recycling initiative, in which it is selling off non-core assets. This particular center, Free State Shopping Center, traded at an attractive price for a non-core asset, says CFO and Treasurer Dan Guglielmone. “This transaction further exemplifies our diversified and disciplined approach to our balance sheet and capital funding needs,” he said in prepared remarks.
The REIT owns several assets in the Washington, DC area including Bethesda Row, Friendship Center, Chesterbrook, Barcroft Plaza, Pentagon Row and Fairfax Junction.
The acquisition increases the size of New Market’s portfolio to 47 grocery-anchored shopping centers across nine states and it is consistent with its strategy to acquire well-positioned grocery-anchored shopping centers in suburban Sunbelt and Mid-Atlantic markets with strong demographics that are anchored by market leading grocers, according to prepared remarks by CEO Joel T. Murphy.