Federal Realty Investment Trust has expanded its Central Region portfolio with the acquisition of The Summit, a large open-air retail destination in Birmingham, Alabama, for $508 million, or $498 million on a net basis. The transaction adds a longstanding regional retail asset to the company’s holdings and reflects ongoing investor interest in established shopping centers anchored by consistent tenant demand.
The Summit spans roughly 100 acres and comprises approximately 870,000 square feet of open-air retail space. The property has been developed in phases over more than 30 years, evolving into a major shopping destination within the Birmingham market. Prior to the sale, the center was owned by Bayer Properties, which has developed additional retail hubs using The Summit name in other locations.
Centennial served as the leasing and property management firm for The Summit under the prior ownership. The property is currently 92% occupied, and ownership reports that several signed leases are in place that are expected to push occupancy higher over the coming months. This leased-but-not-yet-open activity supports near-term growth in in-place tenancy without requiring a ground-up development cycle.
The center is situated at the intersection of Interstate 459 and U.S. 280 in Birmingham, positioning it along one of the area’s key retail and commuter corridors. The highway access reinforces the property’s role as a regional draw, capturing shoppers from across the broader trade area. Its scale, longevity and current occupancy profile highlight its status as a mature, institutional-quality retail asset.
Federal Realty expects to fund the acquisition on a long-term basis using a combination of proceeds from asset sales, free cash flow and capital raised through the company’s recently issued convertible notes. This capital stack blends internal cash generation with balance-sheet-driven funding sources rather than relying on a single type of external financing.
With the addition of The Summit, Federal Realty’s Central Region portfolio now includes seven properties totaling approximately 2.7 million square feet across Chicago, Kansas City, Omaha and Birmingham. The Birmingham acquisition broadens the company’s geographic footprint within the region while increasing its exposure to high-traffic open-air retail formats. The deal also underscores the role of large, established shopping centers in institutional retail investment strategies.
