Dealmaker: Federal Realty Acquires Brooklyn Retail for $84M

Georgetowne Shopping Center

Federal Realty Investment Trust, Rockville, Md., acquired Georgetowne Shopping Center, a 147,000-square-foot grocery-anchored neighborhood shopping center in Brooklyn, N.Y., for $83.7 million.

Anchored by specialty grocer Fairway Market and Five Below, the property in Brooklyn’s Georgetown neighborhood is currently 90 percent occupied. Inline tenants include Starbucks and Chipotle. The real estate investment trust said it plans to increase value over time through marketing, space lease up and potentially adding square footage.

Federal Realty CFO and Treasurer Dan Guglielmone said the property has more surface parking than other shopping centers in the market, which mainly rely on street and structured parking. “In addition, Georgetowne Shopping Center’s location exhibits strong demographics and high barriers to entry, all of which are consistent with our investment strategy,” he said. Census figures indicate there are 88,845 people within a one-mile radius average household income exceeding $102,000.

The property is on Ralph Avenue in the Georgetown neighborhood, a subdivision of Bergen Beach bordering Mill Basin and Flatlands. Downtown Manhattan is 7.5 miles northwest and John F. Kennedy International Airport is six miles east.

In October Federal Realty closed sold Plaza Pacoima in Pacoima, Calif. for $51.3 million. Plaza Pacoima in the San Fernando Valley is a 204,000-square-foot Costco- and Best Buy-anchored power center. Federal Realty acquired the property in a joint venture with Primestor Development, Inc., Los Angeles.

Federal Realty has completed $149 million of dispositions this year.