By Jon Peterson
Federal Realty Investment Trust has acquired a 71,000 square foot retail property located on Fourth Street in Berkeley for $23.9 million, or roughly $336 per square foot, as stated by the public REIT in its second quarter 2017 earnings results.
This acquisition was done in a joint venture where Federal Realty owns a 90 percent stake in the property. The remaining ownership in the property is held by entities that are based on the East and West Coasts.
Federal Realty stated in its earnings conference call that the property is currently 55 percent occupied. The current tenants in the property are CB2, a furniture store located at 1730 Fourth Street and Ingram Book Group located at 1700 Fourth Street. It will look to lease up some of the empty space. There might be additional uses considered for this property in the future.
The Fourth Street corridor has been an active one in the city. Jamestown LP, another national real estate investment and management firm, owns an entire block on Fourth Street between Hearst and University Avenue. The company had announced that lululemon, Marlowe, Project Juice and SoulCycle were some of the retailers going into the space. The new tenants will sit adjacent to the historic Spenger’s Fish Grotto restaurant, Anthropologie and Paper Source, located on the south end of the Fourth Street Berkeley shopping district.