Federal Realty launches ‘Resi-Over-Retail’ builds across its portfolio
An owner of more than 100 outdoor centers concentrated in the Northeast and the West Coast is investing $400 million dollars to ignite visits across its portfolio.
North Bethesda, Md.-based Federal Realty Investment Trust calls its “Resi-Over-Retail” project an effort to “create long-term value by layering residential density” onto its existing retail properties, which range in size from 50,000 to more than half-a-million square feet.
Residential builds are currently underway at Bala Cynwyd On City Avenue and Willow Grove Shopping Center north of Philadelphia; Santana Row in San Jose, and 301 Washington Street in Hoboken, N.J. Nearly 800 residential units will be created across the four properties.
"This is a strategy we've been refining for more than two decades," said Federal’s CEO Don Wood. “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.”
The Willow Grove property will reposition approximately 130,000 square feet of existing retail through demolition and redevelopment into a six-story mixed-use building with 261 residential units, a 438-space parking structure, and an additional 52,000 square feet of retail space.
Construction is expected to begin in the second quarter of 2026.
A Federal Realty press release says that its Resi-Over-Retail project is “unlike traditional ground-up development,” making use of existing land positions to establish retail demand while mitigating development risk.
Newer ground-up developments built by Federal Realty — such as Bethesda Row outside of Washington D.C and Assembly Row outside of Boston — are downtown streetscapes whose tenant lists are curated with distinct food-and-beverage offerings and high-level brands such as Apple, Williams-Sonoma, Warby Parker, and Sephora.
The company intends to identify Resi-Over-Retail opportunities across its portfolio where residential density may be introduced over time.
“This is a repeatable model that allows us to create growth from within our existing portfolio and build long-term value," Wood said.
