Federal Realty Investment Trust (FRT) disclosed that it has booked Bank of America Merrill Lynch, the corporate and investment banking division of Bank of America Corporation (BAC) as anchor office tenant at the Pike & Rose in North Bethesda, MD. The deal signifies the demand of this new mixed-use neighborhood center in the prosperous region of Montgomery County.
In particular, Bank of America Merrill Lynch will inhabit 40,000 square feet at the Class ‘A’ office building in Phase 1 of Pike & Rose. The LEED certified office property spans 80,000 square feet.
As a matter of fact, the initial phases of the Pike & Rose will be delivered in late 2014 and early 2015. It will have around 500 luxurious apartments, several entertainment options and various renowned retailers and restaurateurs such as The Gap, Inc. (GPS), Del Frisco's Restaurant Group, Inc. (DFRG) and Stella Barre Pizzeria of Lettuce Entertain You.
This current deal with the leading wealth management and financial services’ firm is strategic fit for Federal Realty and is expected to enhance the value of Pike & Rose. In fact, going forward, we believe that with such a diversified tenant base and location of shopping centers in densely populated and prosperous communities in the top U.S. markets, Federal Realty is well poised to enjoy a stable source of rental revenue.
Federal Realty is scheduled to report its second-quarter 2014 results on Aug 7, after the closing bell. The Zacks Consensus Estimate for the same is pegged at $1.21, representing year-over-year growth of 6.36%.
This retail real estate investment trust (:REIT) currently carries a Zacks Rank #3 (Hold).