Federal Realty involved in town center project

Federal Realty Investment Trust is embarking on a major new urban development — a year and a half after announcing that it was moving away from “main street” communities in favor of conventional projects. The new urban project, called Rockville Town Square, includes 651 residential units, 170,000 square feet of retail, at least 370,000 square feet of offices, and significant civic space on about 15 acres. The $300 million project, scheduled to be completed in 2006, is the “grayfield” redevelopment of a mall in the heart of this city north of the District of Columbia. Federal Realty, a real estate investment trust with assets of about $1.9 billion, was one of the largest firms in the New Urbanism until 2002. Rockville Town Square does not represent a shift in strategy for Federal Realty, according to company spokesperson Kristine Warner. Federal is involved in Rockville Town Square because it owns part of the site — a shopping center that is being torn down — and because the project is a public-private partnership, which reduces the company’s risk. Federal has a $30 million stake in Rockville Town Square. Other players include the city, the county, and two other developers — Danac Corp.

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