Federal Realty's Pike & Rose to Headquarter Choice Hotels International

Rhea-AI Summary

On October 25, 2021, Federal Realty Investment Trust announced a long-term lease with Choice Hotels International for 105,000 square feet at 915 Meeting Street in North Bethesda, Maryland. This new 276,000-square-foot office building will feature top amenities and is set to begin construction later this year. Choice Hotels plans to relocate 400 employees there starting December 2023. The Pike & Rose development includes retail and dining options, contributing to the area's growth and corporate interest.

Positive

• Choice Hotels committed to a 105,000 square foot lease in a prime location.
• Construction of 915 Meeting Street will enhance Federal Realty's portfolio.
• Pike & Rose is gaining traction as a desirable location for leading firms.

Negative

• None.

NORTH BETHESDA, Md., Oct. 25, 2021 /PRNewswire/ -- Federal Realty Investment Trust (NYSE: FRT) today announced that Choice Hotels International, Inc. (NYSE: CHH) has signed a long-term lease to occupy 105,000 square feet in 915 Meeting Street, a new 276,000-square-foot trophy office building to be constructed at the award-winning mixed-use development of Pike & Rose in North Bethesda, Maryland.

"Pike & Rose has everything employers and employees are looking for in office space today – convenient location with excellent regional access and world-class amenities both inside and outside of the building," said Wendy Seher, the company's president of the east coast region. "We are excited to add a company of the caliber of Choice Hotels to the growing list of leading firms that have chosen a Federal Realty office environment to help them attract quality talent and enhance their brands."

915 Meeting Street will be a 16-story, state-of-the-art, LEED Gold-targeted building featuring 9,600 square feet of ground floor retail, approximately 25,000-square-foot flexible floor plates and 700 dedicated parking spaces. The building, designed by Gensler, will incorporate a vibrant architectural design that includes numerous amenities, such as a rooftop conference center with collaborative common areas, WiredScore-targeted connectivity, a fitness center, and resource-efficient sustainable and wellness features.

Located in the rapidly emerging submarket of North Bethesda, 915 Meeting Street will sit within the transit-oriented, LEED Gold-certified neighborhood of Pike & Rose and its more than 400,000 square feet of thoughtfully curated retail, services, dining, and entertainment offerings. The new construction comes following the success of Pike & Rose's 300,000 square feet of existing office product, which includes tenants such as Bank of America, JLL, Industrious, OneDigital and Federal Realty's corporate headquarters.

915 Meeting Street is expected to break ground later this year. The building is 40% pre-leased to Choice Hotels, who plans to relocate approximately 400 corporate employees from its current headquarters beginning in December of 2023. Bernie McCarthy, executive managing director, and Danny Sheridan, managing director at JLL represented Federal Realty, and Steve London, vice chairman at Savills represented Choice Hotels.

"It's been gratifying to see Pike & Rose become an established neighborhood and the real estate of choice for multiple uses," said Don Wood, chief executive officer for Federal Realty. "The continued demand for office at our mixed-use developments, coming from world-class companies like Splunk and NetApp at Santana, Partners Healthcare and PUMA at Assembly, and now Choice at Pike & Rose, validates our track record of delivering a high-quality product that capitalizes on the highly amenitized environments we have created."

About Pike & Rose

Since its opening in 2014, the transit-oriented neighborhood has grown to over 700,000 square feet, including over 50 thoughtfully merchandized retail tenants. The selection of restaurants (including Summer House Santa Monica, Fogo de Chao, &pizza, sweetgreen, and Julii), retailers (including REI, Sephora, L.L.Bean, Sur La Table, and Uniqlo), a state-of-the-art Porsche dealership, and unique entertainment offerings (including iPic Theaters, Pinstripes, Sports & Social, and AMP by Strathmore) have created a one-of-a-kind retail environment. The neighborhood is further enhanced by 99 luxury condominiums and penthouses uniquely positioned above Canopy by Hilton, a 177-key boutique hotel; 300,000 square feet of best-in-class office space with more underway; 765 luxury apartments; and a 17,000-square-foot rooftop farm. As of June 30, 2021, Federal Realty's total investment at Pike & Rose is approximately $710 million. To learn more, visit www.pikeandrose.com.

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 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 25 million square feet, and approximately 2,900 residential units.

Federal Realty has increased its quarterly dividends to its shareholders for 54 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. 

Media Inquiries:
Brenda Pomar 
Director, Corporate Communications
301.998.8316
bpomar@federalrealty.com

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SOURCE Federal Realty Investment Trust

FAQ

What significant lease agreement was announced by Federal Realty on October 25, 2021?

Federal Realty announced a long-term lease with Choice Hotels International for 105,000 square feet at 915 Meeting Street.

When will Choice Hotels relocate to its new headquarters in North Bethesda?

Choice Hotels plans to relocate approximately 400 corporate employees starting in December 2023.

What is the expected size and features of the new office building at Pike & Rose?

The new office building will be 276,000 square feet with amenities including retail space, a rooftop conference center, and wellness features.

How much of the 915 Meeting Street building is already pre-leased?

The building is currently 40% pre-leased to Choice Hotels.

What are the benefits of the Pike & Rose location for office tenants?

Pike & Rose offers a convenient location, excellent regional access, and world-class amenities.