Maryland
Federal Realty Buys Maryland Retail Plaza for $187M
One of the nation’s oldest real estate investment trusts has acquired an open-air retail plaza in eastern Maryland, the latest firm to snag a substantial property amid the retail’s resurgence.
North Bethesda, Md.-based Federal Realty Investment Trust, founded in 1962, has paid $187 million for the retail portion of the mixed-use Annapolis Town Center, a 480,000-square-foot shopping center in Annapolis. PGIM Real Estate sold the complex, which is anchored by Whole Foods alongside fellow tenants such as Anthropologie, Sephora, Restoration Hardware, and Williams Sonoma.
“This is exactly the kind of opportunity we target: a dominant asset with strong fundamentals, competitive positioning, and the potential to unlock further value under our ownership,” Don Wood, Federal Realty president and CEO, said in a statement.
Federal Realty’s new property is just a portion of the 2 million-square-foot Annapolis Town Center, developed in 2008 at 1906 Towne Centre Boulevard by Greenberg Gibbons. PGIM acquired the mixed-use complex in 2018, though earlier this year it opted to sell the property’s multifamily component — two buildings totaling more than 400 units — to Peterson Companies for $160 million.
Federal Realty joins other investment firms acquiring Maryland malls in the past 12 months, though under widely varying circumstances.
In November, Spinoso Real Estate Group paid $190 million for the 1.2 million-square-foot White Marsh Mall near Baltimore. Spinoso had been the mall’s court-appointed receiver for about a year at the time, owing to financial distress from former owner Brookfield.
European mall giant Unibail-Rodamco-Westfield (URW) meanwhile has faced its own distress with Westfield Wheaton, a 1.7 million-square-foot plaza on the northern outskirts of Washington, D.C. The mall was transferred to special servicing in April after URW failed to meet its March debt maturity, and the company has reportedly opted to sell following a meager $166 million appraisal in August, Bisnow reported at the time.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
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U.S. Dept. of Transportation raises concerns about Baltimore Key Bridge rebuild costs, traffic congestion in Maryland
The U.S. Department of Transportation (USDOT) raised concerns about the cost of rebuilding Baltimore’s Francis Scott Key Bridge and traffic congestion in Maryland.
On Tuesday, USDOT Secretary Sean Duffy said he plans to meet with Maryland Gov. Wes Moore to discuss the increased estimated cost of the rebuild and congestion along the I-495 and I-270 corridor.
“I look forward to discussing the urgent matter of relieving severe congestion on the American Legion Memorial Bridge and getting the Francis Scott Key Bridge project back on track with Governor Moore,” Duffy said.
It is currently unclear when the meeting will take place.
WJZ has reached out to the governor’s office for comment.
Estimated cost to rebuild Key Bridge
The Key Bridge rebuild project was initially projected to cost about $2 billion. However, in November, the Maryland Transportation Authority (MDTA) shared an updated estimate of $4.3 billion to $5.2 billion.
According to the MDTA, the cost increase is due to a dramatic rise in “material costs for all aspects of the project.” Officials said the preliminary estimates were prepared less than two weeks after the bridge collapsed in March 2024, and the new estimates came as design and pre-construction phases progressed.
The MDTA also said the project would be completed by 2030, rather than 2028.
The new Key Bridge will have two 12-foot lanes in each direction and is expected to have a lifespan of 100 years.
In December 2024, state lawmakers confirmed that the federal government would be covering the full cost of the rebuild after securing funding in a federal spending bill.
Duffy said he sent a letter to Gov. Moore in September, raising concerns about the bridge rebuild and questioning the proposed budget and timeline.
Maryland traffic concerns
In the letter Tuesday, Duffy also said the Federal Highway Administration (FHWA) is seeking public input on accelerating the reconstruction of the American Legion Memorial Bridge in Montgomery County. The move aims to reduce traffic congestion on I-495 and I-270, which commuters use to travel between Washington, D.C., Maryland and Northern Virginia.
“Governor Moore’s lack of action on the American Legion Bridge corridor is holding back progress on one of the nation’s most critical transportation routes,” FHWA Administrator Sean McMaster said in a statement.
The concerns come after Washington, D.C., was rated number one in the U.S. for worst traffic congestion, Duffy said, citing a Consumer Affairs report.
“Maryland’s highways help connect thousands to our nation’s capital, and as part of our effort to revitalize the area and make it safe and beautiful, holding leaders accountable at every level is essential to making sure taxpayer dollars are used effectively and efficiently,” Duffy said in a statement.
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