Federal Realty Investment Trust announced a $400 million pipeline of residential‑over‑retail projects that will add density to its existing retail portfolio across four markets. The new projects include a six‑story mixed‑use development in Willow Grove, Pennsylvania, and complementary sites in Bala Cynwyd, PA; Hoboken, NJ; and Santana Row, CA.
The Willow Grove project will replace 130,000 sq ft of current retail space with a six‑story building that will house 261 residential units, a 438‑space parking structure, and 52,000 sq ft of new retail. Construction is slated to begin in the second quarter of 2026, and the project is estimated to cost between $110 million and $120 million.
Other pipeline sites range from $45 million to $148 million and will add between 45 and 258 units. Bala Cynwyd is projected at $90–$95 million for 217 units, Hoboken at $45–$48 million for 45 units, and Santana Row Lot 12 at $140–$148 million for 258 units. All projects are underwritten to achieve blended yields approaching 7%, reinforcing Federal Realty’s strategy of generating long‑term value by layering residential density onto its retail assets.
The announcement follows a strong Q4 2025 earnings report that highlighted significant year‑over‑year gains in net income and earnings per share, underscoring the company’s financial strength and its ability to fund new development. Federal Realty’s capital‑recycling program—selling stabilized assets to reinvest in higher‑yielding projects—has already generated roughly $170 million in recent sales, and the new pipeline is expected to add nearly 3,500 additional residential units in the near term. The company’s status as a Dividend King, with 58 consecutive years of dividend increases, further supports its long‑term value proposition.
"Adding thoughtfully designed residential density to our retail properties creates a more desirable living environment, drives daily traffic, strengthens retailer performance, and generates attractive risk‑adjusted returns. It is a repeatable model that allows us to create growth from within our existing portfolio and build long‑term value," said Don Wood, President and CEO. The statement highlights the company’s confidence in the scalability of its residential‑over‑retail model and its commitment to delivering consistent shareholder returns.
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