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Federal Realty REIT pays $345M for stake in 1.35M sf LA retail portfolio

Company partnered with Primestor to pump $20M into redevelopment of Olivo at Mission Hills

A collage of the seven Los Angeles shopping centers Federal Realty Investment Trust paid for (credit: Federal Realty Investment Trust)
A collage of the seven Los Angeles shopping centers Federal Realty Investment Trust paid for (credit: Federal Realty Investment Trust)

Retail REIT Federal Realty Investment Trust acquired a 90 percent stake in Primestor Development’s seven-property, 1.35 million-square-foot shopping center portfolio for $345 million.

The new joint venture now controls five shopping centers: the 222,000-square-foot Azalea in South Gate, the 327,000-square-foot Bell Gardens center, the 48,000-square-foot Plaza Del Sol in South El Monte, the 204,000-square-foot Plaza Pacoima and the 148,000-square-foot Sylmar Town Center, according to Bisnow.

It also has full ownership of the under-redevelopment Olivo at Mission Hills project, at 10310 Sepulveda Boulevard. The price includes $20 million to finish redeveloping the 155,000-square-foot center.

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The two companies also hold a 25 percent minority stake in the 245,000-square-foot La Alameda center in Walnut Park.

Pimestor will continue to handle leasing and management of the properties with oversight from the investment committee at the Rockville, Maryland-based REIT, which will now include Primestor co-founder Arturo Sneider.

Tenants in the centers include Ross Stores, Marshall’s and Food 4 Less.

Federal has been in acquisition mode. Earlier this year, it picked up a 15-acre retail plaza in Pasadena for $29.5 million. [Bisnow]Rich Bockmann

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