MONTEREY – Del Monte Shopping Center, the popular open-air shopping center in Monterey, has been bought by Federal Realty Investment Trust, a real estate company headquartered in North Bethesda, Maryland, for $123.5 million.

The Monterey Peninsula Chamber of Commerce “has been aware that previous (Del Monte Center) ownership was considering a sale,” said Chamber CEO Monica Lal. “The new owners, Federal Realty, own and manage other significant properties in the region, some with mixed use. We are glad the new owners have chosen to continue working with the current general manager and (Chamber) Director, Anne Sierra, whose extensive retail and local background will help inform the vision for this locally-loved asset.”

The seller was American Assets Trust, a San Diego investment firm that bought the Center in 2004.

“Del Monte Shopping Center is the premier retail destination of the Monterey Peninsula, an area characterized by strong incomes and home to one of the most affluent leisure destinations in the U.S.,” said Executive Vice President, Chief Investment Officer at Federal Realty Jan Sweetnam, in a press release. “This acquisition aligns with Federal Realty’s strategy to expand into affluent but underserved markets. We look forward to capitalizing on our deep relationships with aspirational retailers looking to expand and enter new markets with a partner who has a history of delivering great places and strong sales.”

Del Monte Shopping Center, which opened in 1967, is a 675,000-square-foot regional shopping center located near Highway 1 and Munras Avenue in Monterey. It provides shopping, dining and entertainment opportunities with more than 70 stores, and upwards of 15 restaurants, all in an outside garden setting. Del Monte Shopping Center is anchored by Macy’s, Whole Foods Market and Century Theatres.

“The sale of Del Monte Center is a strategic decision that allows us to focus on markets where we can achieve greater economies of scale and operational efficiencies while aligning with our long-term growth objectives, ” said Adam Wyll, American Assets president and CEO in a press release. “We are proud of the value we have created at Del Monte Center and confident that the new ownership will continue to build upon its success.”

The property serves a trade area of over 225,000 residents and is the region’s most visited retail center within a 15-mile radius, says Federal Realty. It ranks in the nation’s top 5% of all shopping centers for annual foot traffic, according to Placer.ai, a location intelligence and foot traffic data software.

Federal Realty, founded in 1962, says it is 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 Northern and Southern California.

Its expertise includes creating urban, mixed-use neighborhoods such as Santana Row in San Jose, Pike & Rose in North Bethesda, and Assembly Row in Somerville, Massachusetts.

Developed by Federal Realty Investment Trust, Santana Row is the $450 million, 42-acre mixed-use/multi-use residential, shopping, dining and entertainment district in San Jose that offers more than 2.4 million square feet of space featuring about 615 luxury rental homes, nearly 220 privately-owned condos, along with shops, restaurants, spas, salons, a boutique hotel and a movie theater.

“Federal Realty has an elite reputation among retailers and intermediaries like us, particularly when it comes to delivering an exceptional retail experience that appeals to the more affluent customer in search of elevated brands and offerings,” said Naveen Jaggi, president, Retail Advisory Services at JLL, in the release. “Their acquisition of Del Monte in Monterey will undoubtedly pique the interest of restaurants and retailers that wouldn’t have been as enthusiastic before.”

Jones Lang LaSalle Incorporated – JLL – was founded in London and is headquartered in Chicago. It is a global real estate services company with offices in 80 countries.

Laura Tinetti and Molly Morgan of JLL’s 10Twelve boutique lifestyle leasing team will represent Federal Realty Investment Trust in the remerchandising and leasing of Del Monte Center. 10Twelve was created by JLL property management.

JLL uses remerchandising as part of its retail real estate strategy to optimize commercial spaces, improve tenant mixes and enhance consumer experiences, according to the company. JLL works with retailers and landlords to reposition properties, ensuring that retail spaces align with current market trends and customer preferences. This includes utilizing data-driven insights, integrating technology and focusing on sustainability to attract tenants and drive foot traffic.

JLL also plays a role in helping businesses transition and adapt to evolving retail demands. This can involve repurposing vacant spaces, implementing experiential retail concepts and advising on leasing strategies to maximize profitability and long-term value for landlords and investors.

Federal Realty says its mission is to deliver long-term, sustainable growth through investing in communities where retail demand exceeds supply.

Federal Realty’s 102 properties include approximately 3,500 tenants in 27 million commercial square feet, and approximately 3,100 residential units.

Federal Realty says it has increased its quarterly dividends to its shareholders for 57 consecutive years, the longest record in the REIT industry. Federal Realty is an S&P 500 index member and its shares are traded on the NYSE under the symbol FRT.

Originally Published: February 26, 2025 at 2:44 PM PST