- Class-A Office Building Now 100% Pre-Leased -
SAN JOSE, Calif., Aug. 27, 2018 /PRNewswire/ -- Federal Realty Investment Trust (FRT) today announced that Splunk Inc. signed a long-term lease for 301,000 square feet of office area in the Trust's 700 Santana Row, a 319,000 square foot, Class-A mixed-use office and retail building under construction at Santana Row at the intersection of Santana Row and Olsen Drive. Splunk helps customers monitor, analyze and investigate data to make faster decisions and take action. 700 Santana Row is scheduled to deliver in 2019 and features seven levels of office area above ground floor retail, and a parking garage with approximately 1,300 spaces. The all-concrete structure features 13-foot ceiling heights, a modern glass curtain wall, private terraces, a world-class urban plaza and is built to a LEED Silver standard. 700 Santana Row was designed by WRNS Studio, a San Francisco-based architectural firm, and is being built by Devcon Construction, a Bay Area general contractor; both are managed by Federal Realty.
"We are thrilled to see our existing tenant Splunk expand their footprint and lease 700 Santana Row," stated Jan Sweetnam, Senior Vice President – West Coast Chief Operating Officer of Federal Realty Investment Trust. "Santana Row's mixed-use live-work-play environment and amenities coupled with its superb Silicon Valley location have become an integral part of Splunk's culture - providing significant advantages in employee recruitment and retention as well as employee productivity and satisfaction."
700 Santana Row, together with 500 Santana Row, 300 Santana Row and other mixed-use buildings, brings the total office space offering at Santana Row to 690,000 square feet. The office space is 100% leased to firms including international commercial real estate service firms Cushman & Wakefield and Newmark Knight Frank, worldwide IT company Cisco, leading apartment REIT AvalonBay Communities, healthcare provider Satellite Healthcare, credit reporting company Experian, and others. In addition to the 319,000 square feet of Class-A office and retail space, 700 Santana Row will add almost 1,000 net new parking spaces for patrons' use on nights and weekends. Santana Row also includes 50 shops, 30 restaurants, 9 personal service businesses, 615 rental apartments, 219 residential condominiums and the 215-room boutique Hotel Valencia.
"We are proud that Splunk's continued growth is bringing more jobs to the Bay Area and that our employees have great places to work like Santana Row," said Dave Conte, Chief Financial Officer, Splunk. "700 Santana Row will expand our presence in San Jose. Federal Realty has been a trusted partner of Splunk, and we are grateful and excited to be working with them."
"In the intervening three years since we executed our first lease with Splunk, they have shown tremendous growth in all facets of their business - customers, product innovation, and shareholder value. Splunk is the leader in data management, analytics and security, some of the most dynamic growth businesses in the world today," stated Jeff Berkes, President-West Coast of Federal Realty Investment Trust. "We deeply appreciate Splunk's continued commitment to Santana Row and are equally grateful to the City of San Jose, the Mayor and council, and the city staff for their continued support and partnership in making Santana Row one of the Country's most successful mixed-use neighborhoods."
About Federal Realty
Federal Realty 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 San Francisco and Los Angeles. Founded in 1962, Federal Realty's mission is to deliver long term, sustainable growth through investing in densely populated, affluent communities where retail demand exceeds supply. Its expertise includes creating urban, mixed-use neighborhoods like Santana Row in San Jose, California, Pike & Rose in North Bethesda, Maryland and Assembly Row in Somerville, Massachusetts. These unique and vibrant environments that combine shopping, dining, living and working provide a destination experience valued by their respective communities. Federal Realty's 105 properties include approximately 3,000 tenants, in approximately 24 million square feet, and over 2,600 residential units.
Federal Realty has increased its quarterly dividends to its shareholders for 51 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. For additional information about Federal Realty and its properties, visit www.FederalRealty.com.
Safe Harbor Language
Certain matters discussed within this press release may be deemed to be forward-looking statements within the meaning of the federal securities laws. Although Federal Realty believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. These factors include, but are not limited to, the risk factors described in our Annual Report on Form 10-K filed on February 13, 2018, and include the following:
- risks that our tenants will not pay rent, may vacate early or may file for bankruptcy or that we may be unable to renew leases or re-let space at favorable rents as leases expire;
- risks that we may not be able to proceed with or obtain necessary approvals for any redevelopment or renovation project, and that completion of anticipated or ongoing property redevelopments or renovation projects that we do pursue may cost more, take more time to complete, or fail to perform as expected;
- risks that we are investing a significant amount in ground-up development projects that may not perform as planned, may be dependent on third parties to deliver critical aspects of certain projects, requires spending a substantial amount upfront in infrastructure, and assumes receipt of public funding which has been committed but not entirely funded;
- risks normally associated with the real estate industry, including risks that occupancy levels at our properties and the amount of rent that we receive from our properties may be lower than expected, that new acquisitions may fail to perform as expected, that competition for acquisitions could result in increased prices for acquisitions, that costs associated with the periodic maintenance and repair or renovation of space, insurance and other operations may increase, that environmental issues may develop at our properties and result in unanticipated costs, and, because real estate is illiquid, that we may not be able to sell properties when appropriate;
- risks that our growth will be limited if we cannot obtain additional capital;
- risks associated with general economic conditions, including local economic conditions in our geographic markets;
- risks of financing, such as our ability to consummate additional financings or obtain replacement financing on terms which are acceptable to us, our ability to meet existing financial covenants and the limitations imposed on our operations by those covenants, and the possibility of increases in interest rates that would result in increased interest expense; and
- risks related to our status as a real estate investment trust, commonly referred to as a REIT, for federal income tax purposes, such as the existence of complex tax regulations relating to our status as a REIT, the effect of future changes in REIT requirements as a result of new legislation, and the adverse consequences of the failure to qualify as a REIT.
Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements that we make, including those in this press release. Except as may be required by law, we make no promise to update any of the forward-looking statements as a result of new information, future events or otherwise. You should carefully review the risks and risk factors included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 13, 2018.
Leah Andress Brady
Investor Relations Manager
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