Birmingham’s The Summit, home to more than 30 retailers and restaurants with their only Alabama location there, has sold for $508 million in the first sale in the shopping center’s history.
Maryland-based Federal Realty Investment Trust announced the acquisition Oct. 1, saying it purchased the property from its original developer.
For shoppers, The Summit offers a mix of familiar stores and places they won’t find anywhere else in the state. Its more than 110 tenants include Apple, Trader Joe’s, RH, Nordstrom Rack, Alo Yoga, Sephora and North Italia.
The shopping center draws nearly 9 million visits annually from a trade area extending 100 miles in every direction, according to Placer.ai data cited by Federal Realty. The company describes it as Alabama’s most-visited retail destination.
Located at Interstate 459 and U.S. 280, the open-air center covers 100 acres and approximately 870,000 square feet between Mountain Brook and Vestavia Hills.
“Opportunities to buy truly irreplaceable, dominant assets like The Summit don’t come along often, and we can’t be more excited about adding this property to our portfolio,” said Don Wood, president and chief executive officer of Federal Realty.
The Summit was 92% occupied at the time of the announcement. Federal Realty said signed leases already in place are expected to increase occupancy over the next several months.
The company also cited recent commitments from Aritzia, Reformation and LoveShackFancy as evidence of The Summit’s role in bringing retailers to Alabama.
Wood said the purchase strengthens relationships with retailers that could benefit the company’s other properties.
Federal Realty expects to fund the acquisition over the long term through a combination of proceeds from property sales, free cash flow and proceeds from recently issued convertible notes.
Founded in 1962, Federal Realty owns, operates and redevelops shopping centers and mixed-use properties. The company’s portfolio includes 103 properties with approximately 3,700 tenants and 28.8 million square feet of commercial space.
Sherri Blevins is a staff writer for Yellowhammer News. You may contact her at [email protected].
