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Federal Realty Secures $125M for Refi


Federal Realty, a recognized leader in the ownership, operation and redevelopment of high-quality retail based properties located primarily in major coastal markets from Washington, D.C. to Boston as well as San Francisco and Los Angeles, has secured a 10-year, fixed-rate loan through PGIM Real Estate Finance.

Holliday Fenoglio Fowler LP arranged the refinancing for Plaza El Segundo, a 380,558-square-foot, high-quality retail center in the South Bay community of El Segundo, CA.

Completed in 2007, Plaza El Segundo is 97% leased and comprises 13 buildings in three shopping districts: The Plaza, The Collection, and The Edge. The property features a strong tenant line-up that includes Whole Foods, Dick’s Sporting Goods, lululemon athletica, Anthropologie and Salt Creek Grill. Situated on 36.82 acres at 710-780 Sepulveda Boulevard, Plaza El Segundo is located at the dominant intersection of Rosecrans Avenue and Sepulveda Boulevard (Pacific Coast Highway), which connects the affluent beach communities of Manhattan Beach, Hermosa Beach, Redondo Beach and El Segundo, and has combined traffic counts in excess of 110,000 vehicles per day. More than 167,000 residents earning an average annual household income of $100,192 live within three miles of the center.

The HFF debt placement team representing the borrower was led by senior managing director Kevin MacKenzie and associate director Matthew Stewart.

“Despite some recent headwinds in the retail market, this transaction is a great example of the availability of capital for premiere retail properties with best-in-class sponsorship,” MacKenzie says. “There was strong interest in the opportunity given the A-plus location and tenant line-up, and it was a true team effort from all parties to get the most efficient capital in place for the asset plan.”

Federal Realty has paid quarterly dividends to its shareholders continuously since its founding in 1962, and has increased its dividend rate for 49 consecutive years, the longest record in the REIT industry.