Avison Young represents BXP in $19.7M sale of Kingstowne Retail & Cinema to Federal Realty

The purchase of 5900 Kingstowne Village Parkway supports Federal Realty’s broader ownership strategy for Kingstowne Towne Center

Alexandria, VA – Global commercial real estate advisor, Avison Young, today announced the completion of the $19,700,000 sale of 5900 Kingstowne Village Parkway, a fully leased 88,288 SF Class A retail complex situated in the heart of Kingstowne Towne Center in Alexandria, VA to Federal Realty Investment Trust (NYSE: FRT).

Kingstowne is Virginia's second largest planned urban development, and the town center is home to more than 1.6 million SF of retail and office space anchored by two dominant grocers, Giant and Safeway. It is the second most visited shopping center in the state, with visitation up 47% since Q1 2020.

Representing the seller, BXP (NYSE: BXP), the transaction was led locally by Joe French, Vice President of Avison Young's U.S. Capital Markets Group in Washington, D.C. French was supported by the firm's national U.S. Investment Sales team, including James Nelson, Principal, Head of U.S. Investment Sales and Erik Edeen, Principal, Senior Director whose national platform and deep investor relationships were instrumental in generating a broad and highly competitive pool of qualified national investors and developers.

This acquisition underscores the long-term strategic vision for Federal Realty Investment Trust (NYSE: FRT), which now owns 500,000 SF of the retail center.

“This property is the keystone of Kingstowne Towne Center, the singular asset that activates and connects the retail experience between two of Virginia's top-five performing grocery stores and serves as the center’s entertainment hub,” said French. “Buyers were drawn to the property's long-term track record of near-full occupancy, exceptional tenant roster, and some of the strongest rents in the submarket. With 646 Class A apartments coming online at its front door, the next chapter of this property is exciting. When Federal Realty completed this acquisition, they didn't just buy a retail property, they tied together 500,000 square feet of best-in-class retail into one of Northern Virginia's most dynamic live-work-play environments."

”The sale of 5900 Kingstowne Village Parkway is consistent with our strategy of divesting non-core assets to further fund our active development pipeline” said Pete Otteni, EVP, Co-Head of the Washington DC Region. “We appreciate Avison Young’s guidance and congratulate Federal Realty on the acquisition of this high performing retail asset.”

5900 Kingstowne Village Parkway has remained nearly 100% leased for the past decade. There are currently 646 Class A multifamily units in the final stages of pre-development on 4.66 acres of surface parking directly in front of the property, supporting future demand.