This sale marks the end of Federal Realty’s more than two-decade presence on the Promenade
Federal Realty Investment Trust has sold its portfolio of eight buildings on Santa Monica’s Third Street Promenade for $103 million, according to a report from The Real Deal.
The Bethesda, Maryland-based real estate investment trust sold the 185,000-square-foot portfolio for approximately $556 per square foot.
This sale marks the end of Federal Realty’s more than two-decade presence on the Promenade, reported the real estate news outlet. The REIT purchased its first building on the strip in 1996. Last December, Federal Realty sold a 12,300-square-foot store leased to Dodgers Clubhouse for $17.2 million to Pasadena-based Global Mutual Properties.
Federal Realty invested about $29 million in the Third Street Promenade between 1996 and 2000, as part of a city initiative to attract residents to Downtown Santa Monica, The Real Deal reported. However, the pandemic severely impacted in-store retail sales, leading retailers like Banana Republic and Old Navy to close their Promenade locations.
Currently, about a quarter of the Third Street Promenade is available for lease, with 72 of 97 ground-floor storefronts occupied, according to Real Deal. Most vacancies are concentrated in the 1200 block, where several of Federal Realty’s properties were located.
