Federal Realty is taking over 11.6 acres fronting Winchester where the current Century Theaters sit. I know there is a lot of controversy about this space. Personally, I think if it is going to be redeveloped then the ideal developer would be Federal Realty. They have clearly shown that they could make a successful project with a lot of complex moving parts come together. While they have not made any announcement as to what their exact plans are for the area, I think offices will be a greater part of the mix than the original Santana Row. San Jose needs more jobs at the moment than residential, especially in that general Midtown/Uptown area. I also think there is potential to integrate the new BRT into the new development, which I really hope they consider give the lack of current public transit access. A well integrated BRT line would be the next best thing to having Light Rail running between Downtown San Jose and Santana Row.
Regardless of whether you or for or against this project, this will definitely be something interesting to keep tabs on.
Federal Realty Investment Trust's West Coast president Jeff Berkes has issued the following statement:
“We are excited to announce that Federal Realty has entered into a long-term ground lease with the owners of the 11.6-acre site fronting Winchester Boulevard, opposite Santana Row, that is currently occupied by Century Theaters. We are working with the City of San Jose to explore several different development alternatives that will complement our existing property, Santana Row, and the surrounding community. We look forward to commencing the public process. We have no further comment at this time.”
-- Jeff Berkes, President, West Coast Federal Realty Investment Trust
About Santana Row
Santana Row a 1.5 million square foot mixed used development in the heart of San Jose, California, is Silicon Valley's premier destination for shopping,
dining, living and nightlife. Surrounded by landscaped gardens, parks and plazas, Santana Row features over 70 retail shops, more than 20 acclaimed restaurants, a 212-room boutique hotel and six-screen movie theatre. In addition to the dynamic retail collection, Santana Row offers 622 residential units featuring a fitness center, rooftop pool and resort-living accommodations, and 65,000 square feet of office space at 300 Santana Row, its newest office address. Santana Row is a property of www.federalrealty.com (NYSE:FRT), headquartered in Rockville, Maryland. For more information, please visitwww.santanarow.com.
About Federal Realty
Federal Realty Investment Trust is an equity real estate investment trust specializing in the ownership, management, development, and redevelopment of high quality retail assets. Federal Realty's portfolio (excluding joint venture properties) contains approximately 20 million square feet located primarily in strategically selected metropolitan markets in the Northeast, Mid-Atlantic and California. In addition, the Trust has an ownership interest in approximately 1.0 million square feet of retail space through a joint venture in which the Trust has a 30% interest. Our operating portfolio (excluding joint venture properties) was 95.3% leased to national, regional, and local retailers as of September 30, 2013, with no single tenant accounting for more than approximately 3.4% of annualized base rent. Federal Realty has paid quarterly dividends to its shareholders continuously since its founding in 1962, and has increased its dividend rate for 46 consecutive years, the longest record in the REIT industry. Federal Realty is an S&P MidCap 400 company and its shares are traded on the NYSE under the symbol FRT.