Federal Realty Makes $508M Alabama Retail Buy

Federal Realty Investment Trust has paid $508 million, or $498 million on a net basis, for The Summit, an 870,000-square-foot, open-air shopping center in Birmingham, Ala. Centennial sold the asset, with the transaction marking the property’s first change in ownership since its completion.

Federal Realty expects to fund the acquisition through a mix of asset sale proceeds, free cash flow and funds from recently originated convertible notes. The transaction adds to the company’s growing portfolio in Central U.S., where Federal Realty owns seven assets totaling 2.7 million square feet spread across Chicago, Kansas City, Kan., and Omaha, Neb.

---

READ ALSO: Rethinking the Map: The Rise of Tertiary Retail Markets

---

The Summit will join the buyer’s collection of dominant retail destinations, including Santana Row in San Jose, Calif., Assembly Row in Somerville, Mass., and CocoWalk in Coconut Grove, Fla. The property was 92 percent occupied at the time of sale, with recently signed leases expected to increase its occupancy over the coming months.

A high-traffic retail center in Birmingham

Locally based Bayer Properties developed in phases and completed The Summit more than 30 years ago. Centennial acquired the firm in 2022, thus integrating an 8 million-square-foot portfolio of open-air, power and neighborhood centers across the U.S.

The 100-acre shopping center is at 214 Summit Blvd., between Birmingham’s suburbs of Mountain Brook, Ala., and Vestavia Hills, Ala., at the intersection of U.S. Highway 280 and Interstate 459. Downtown Birmingham and its international airport are both within 12 miles of the property.

The Summit serves a metropolitan area with more than 1.2 million people, while the average household income within a 5-mile radius is roughly $193,000. The property attracts some 9 million visitors per year, according to Placer.ai data cited by the company.

There are more than 110 tenants at The Summit, including Apple, AT&T, Trader Joe’s, Sephora, Restoration Hardware, Ann Taylor, Pandora and Wells Fargo, among others. More than 30 tenants are operating their only Alabama location there.

Targeting key assets in dominant retail corridors

Federal Realty has been steadily expanding its footprint through acquisitions of established, high-traffic lifestyle and open-air centers located in key corridors across the country, mirroring broader retail trends established early 2025.

Many of Federal Realty’s recently purchased properties had remained under the same ownership for more than 20 years, with some trading for the first time since completion. That strategy helped the company expand its U.S. presence in select retail markets.

In February last year, the company paid $123.5 million for Del Monte Shopping Center, a 673,155-square-foot property in Monterey, Calif. American Assets Trust Inc. sold it after 21 years of ownership.

Later that year, Federal Realty acquired Village Pointe, a 453,000-square-foot lifestyle center in Omaha, in a $153.3 million deal. It was the first time the asset changed hands since its completion in 2004.

More recently, Federal Realty purchased a 176,000-square-foot retail center in Rockville, Md. The company paid $72.3 million for Congressional North Shopping Center, marking its fifth investment in the Rockville Pike commercial corridor.