Federal Realty Expands Portfolio with $289M Kansas Acquisition, Advances Capital Allocation Strategy

Federal Realty Investment Trust (FRT) has completed the acquisition of Town Center Plaza and Town Center Crossing in Kansas for $289 million. The company also sold its Hollywood Boulevard retail portfolio in Los Angeles for $69 million and is advancing its development pipeline, including a $145 million residential project in San Jose. FRT has identified over $1 billion in potential dispositions across select stabilized properties to optimize its portfolio and focus on high-growth markets.

Federal Realty Investment Trust (FRT) has completed the acquisition of Town Center Plaza and Town Center Crossing in Leawood, Kansas, for $289 million. The company also sold its Hollywood Boulevard retail portfolio in Los Angeles for $69 million and is advancing its development pipeline, including a $145 million residential project in San Jose. FRT has identified over $1 billion in potential dispositions across select stabilized properties to optimize its portfolio and focus on high-growth markets.

The acquisition of Town Center Plaza and Town Center Crossing, two dominant open-air retail centers in Leawood, Kansas, totals 550,000 square feet. Located in Johnson County, one of the Kansas City metro's most affluent and fast-growing submarkets, the centers serve a trade area of over 600,000 residents and include top-performing locations for retailers such as Trader Joe's, Apple, lululemon, Sephora, Anthropologie, and several Williams Sonoma brands [1].

Federal Realty's President and CEO, Don Wood, stated, "These strategic moves demonstrate how we thoughtfully unlock value and redeploy capital to drive growth. We're entering Leawood, Kansas—an affluent, high-growth market—while crystallizing the value of mature, high-quality assets like our Hollywood retail property and the recent sale of our Levare residential building at Santana Row. At the same time, we're reinvesting right back into Santana Row with a new residential development that continues to strengthen Santana's position as one of the country's premier mixed-use destinations" [1].

The company also sold its Hollywood Boulevard retail portfolio in Los Angeles, totaling 181,000 square feet, for $69 million. Additionally, Federal Realty has identified over $1 billion of potential dispositions across select stabilized retail properties, as well as office and residential assets that are not fully integrated within major mixed-use properties [1].

Construction on Lot 12, a 258-unit residential project at Santana Row in San Jose, is set to begin this summer with an expected total investment of approximately $145 million. The successful sale of Levare highlights the depth of institutional demand for high-quality residential at Santana Row and positions Federal to capitalize on that strength through this next phase of growth [1].

Federal Realty's 217-unit multifamily project in Bala Cynwyd, Pennsylvania, is also progressing well, with construction expected to top out in the third quarter of 2026 and remain on track and under budget. Additionally, a 45-unit residential building with ground-floor retail in Hoboken, New Jersey, has commenced construction, with early retail leasing demand exceeding expectations [1].

These transactions and developments demonstrate Federal Realty's disciplined approach to advancing development where demand, differentiation, and long-term economics align. The company's capital allocation decisions are not only accretive to earnings and elevate the quality of its portfolio but also lay the groundwork for durable, meaningful growth [1].

References:
[1] https://ir.federalrealty.com/news-releases/news-release-details/federal-realty-completes-johnson-county-ks-acquisition-advances
[2] https://seekingalpha.com/news/4466276-federal-realty-closes-kansas-acquisition-advances-capital-allocation-plan
[3] https://www.kctv5.com/2025/07/11/leawoods-town-center-plaza-town-center-crossing-sold-289-million/