Federal Realty Investment Trust Sells Santa Monica Portfolio for $103M

Federal Realty Investment Trust Sells Santa Monica Portfolio for $103M

Luisa Garcia
2 min read

Federal Realty Investment Trust Sells Portfolio of Eight Buildings on Santa Monica's Third Street Promenade for $103 Million

Federal Realty Investment Trust recently finalized the sale of its entire portfolio consisting of eight buildings on Santa Monica's Third Street Promenade for a total of $103 million. This deal signifies the conclusion of over two decades of ownership. The collective space of the buildings amounted to 185,000 square feet, achieving a remarkable $556 per square foot. The buyer's identity has not been disclosed. This transaction follows the company's previous sale in December, involving a 12,300-square-foot store occupied by Dodgers Clubhouse, which was sold for $17.2 million. The evolving landscape of the Third Street Promenade, previously a bustling retail center, has experienced an increase in vacant spaces, with approximately 25% of its areas available for leasing. This situation has particularly affected the 1200 block where Federal Realty's properties were situated.

Key Takeaways

  • Federal Realty Investment Trust made a significant sale, parting ways with eight buildings on the Third Street Promenade for $103 million.
  • The price equates to $556 per square foot for the 185,000 square feet of property.
  • After holding ownership for over two decades since 1996, Federal Realty decided to divest from this prominent location.
  • In December, the sale of a 12,300-square-foot store leased to Dodgers Clubhouse fetched $17.2 million.
  • Presently, about 25% of the Third Street Promenade is available for lease, with 72 out of 97 ground-floor stores already occupied.


Federal Realty's move to divest from Santa Monica's Third Street Promenade, amidst a surge in vacant spaces, foreshadows a shift in retail real estate strategies. The sale, priced at $556 per square foot, mirrors a market affected by the expansion of e-commerce and evolving consumer behaviors. This decision may serve as a precursor to additional sales within the vicinity, impacting local enterprises and property valuations. The future revitalization of the promenade will rely on innovative leasing approaches and adapting to emerging retail trends. The undisclosed buyer's intentions will be instrumental in defining the future vibrancy of this previously thriving retail center.

Did You Know?

  • Federal Realty Investment Trust: This company is a publicly traded real estate investment trust (REIT) specializing in the ownership, management, and redevelopment of high-quality retail properties. REITs are entities that own or finance income-generating real estate across various property sectors and are mandated by law to annually distribute at least 90% of their taxable income to shareholders in the form of dividends.
  • Third Street Promenade: Positioned in Santa Monica, California, this promenade offers upscale shopping, dining, and entertainment experiences. Renowned for its inventive urban street design, it features exclusive pedestrian access, public art, and outdoor cafes, making it a sought-after destination for both locals and tourists.
  • Real Estate Investment Trust (REIT): A REIT is a company engaged in the ownership, operation, or financing of income-producing real estate. Modeled after mutual funds, REITs gather the capital of numerous investors to acquire a portfolio of properties that would typically be inaccessible to individual investors. This structure allows investors to receive a portion of the generated income without needing to personally purchase, manage, or finance any properties.

You May Also Like

This article is submitted by our user under the News Submission Rules and Guidelines. The cover photo is computer generated art for illustrative purposes only; not indicative of factual content. If you believe this article infringes upon copyright rights, please do not hesitate to report it by sending an email to us. Your vigilance and cooperation are invaluable in helping us maintain a respectful and legally compliant community.

Subscribe to our Newsletter

Get the latest in enterprise business and tech with exclusive peeks at our new offerings