Federal Realty Investment Trust (FRT - Analyst Report) completed the development of a residential complex – Chelsea Place – in its shopping center ‘Chelsea Commons’ that is situated near downtown Boston. The move was in line with the company’s plan of effectively utilizing underutilized land parcels.
The four-storied Chelsea Place, comprising 57 units, has 2 and 2-plus bedroom units ranging from about 700 to 1,100 square feet. The complex includes all necessary and luxurious amenities such as a fitness center, in-unit laundry, and 42 covered and uncovered parking lots each.
Moreover, the property has earned an LEED Silver certification and will contain solar panels on the roof. It is developed by Oaktree Development, Keiser Homes and Tocci Building companies. The residential complex was constructed on a plot within the Chelsea Commons.
Advantageously positioned at the intersection of Route 1 and Revere Beach Parkway, in Suffolk County, Chelsea Commons was acquired by Federal Realty in 2006 and spans 222,000 square feet. It boasts several renowned retail giants such as The Home Depot, Inc. (HD - Analyst Report), CVS Caremark Corporation (CVS - Analyst Report), McDonald's Corp. (MCD - Analyst Report) and Gamestop. Notably, the area has a population of approximately 250,531 in a 3-mile radius, with an average household income of $65,599.
We view the above-mentioned development as a strategic fit for Federal Realty. Given the solid demographics of the area, this premium property is expected to offer the company strong upside potential. It would also boost the strong housing market of Chelsea.
Currently, Federal Realty carries a Zacks Rank #3 (Hold).