A Three-Decade Hold Ends
Federal Realty Investment Trust purchased The Summit, an 870,000 square foot open-air shopping center in Birmingham, Alabama, from Bayer Properties for 508 million dollars, or 498 million dollars on a net basis, a deal announced October 1 in a company press release and confirmed by Private Real Estate Daily [1](https://www.privaterealestatedaily.com/story/federal-realty-buys-birmingham-s-the-summit-from-bayer-for-508-million). Bayer Properties, the local developer that built the 100-acre center nearly 30 years ago, had owned it ever since, marking the first sale in the property's history.
The property was reported to be 92 percent occupied at the time of sale, with more than 110 tenants, and has been described in coverage as Alabama's most-visited retail destination, drawing nearly 9 million visits a year from a trade area extending 100 miles in every direction, according to Placer.ai data cited in Federal Realty's own announcement [2](https://www.prnewswire.com/news-releases/federal-realty-acquires-the-summit-alabamas-premier-retail-destination-302896582.html). The Summit sits at the intersection of Interstate 459 and U.S. 280, between the Birmingham suburbs of Mountain Brook and Vestavia Hills, two communities with household incomes well above state and national medians.
The Math Behind the Price
Dividing the reported 508 million dollar purchase price by the center's 870,000 square feet works out to roughly 584 dollars per square foot, a calculation based on the figures reported by Private Real Estate Daily and Federal Realty's own release. That per-square-foot price reflects a stabilized, high-occupancy retail asset in an affluent trade area rather than a distressed or redevelopment opportunity.
Federal Realty chief executive and president Don Wood said in the company's statement that opportunities to buy truly irreplaceable, dominant assets like The Summit do not come along often, adding that the deal is immediately accretive to funds from operations per share and carries exceptional mark-to-market opportunities over the next five years [2](https://www.prnewswire.com/news-releases/federal-realty-acquires-the-summit-alabamas-premier-retail-destination-302896582.html). The acquisition is expected to be funded through a combination of asset sale proceeds, free cash flow and proceeds from the company's recently issued convertible notes, according to Connect CRE [3](https://www.connectcre.com/stories/federal-realty-pays-508m-for-birmingham-retail-center/).
A Tenant Roster Still Taking Shape
The Summit's current roster includes Apple, Trader Joe's, Nordstrom Rack, Barnes and Noble and Belk, and the center was named the 10th best retail center experience in the country by Chain Store Age in 2025 for drawing brands such as Aritzia, Brandy Melville and LoveShackFancy that otherwise have no stores in Alabama, according to Bham Now [4](https://bhamnow.com/2026/10/01/the-summit-sold-for-508m-what-it-means-for-retail-in-birmingham/). The property did lose a major anchor earlier this year when Saks Fifth Avenue closed its store there following its parent company's bankruptcy filing in spring 2026.
Despite that vacancy, the center has continued adding tenants through the year, including the return of Garage after a multi-year absence, the July opening of California-based Reformation, and a PopUp Bagels location that began serving in late July, with British retailer Boden planning a store opening this fall, according to follow-up reporting by AL.com [5](https://www.al.com/news/2026/10/what-do-the-new-owners-of-birminghams-summit-shopping-center-have-planned-for-its-future.html).
Reading the Deal Against the Broader Retail Market
The transaction arrives amid a broader wave of institutional interest in well-located, high-occupancy open-air retail centers, a segment of commercial real estate that has generally outperformed office and some other property types in recent years as consumers continue to favor convenience-oriented shopping formats. With the addition of The Summit, Federal Realty's Central Region now encompasses seven properties totaling roughly 2.7 million square feet across Chicago, Kansas City, Omaha and Birmingham, according to Connect CRE [3](https://www.connectcre.com/stories/federal-realty-pays-508m-for-birmingham-retail-center/).
Wood also said the deal expands Federal Realty's retailer relationships in ways the company expects to benefit other properties in its portfolio, which includes market-dominant centers such as Santana Row in San Jose and Assembly Row in Somerville.
What Comes Next for the Property
Federal Realty said in a statement reported by AL.com that it does not have specific new redevelopment projects to announce and instead plans to build on what already makes The Summit successful, with near-term priorities focused on opening committed retailers, strengthening the merchandise mix, and making investments that enhance the customer experience [5](https://www.al.com/news/2026/10/what-do-the-new-owners-of-birminghams-summit-shopping-center-have-planned-for-its-future.html). The company said it expects to own and grow the center for the long term.
Bayer Properties' plans for the sale proceeds were not detailed in available coverage. Local retailers, residents and competing landlords in the Birmingham market will likely watch whether new ownership brings changes to leasing terms or capital improvements at the shopping center in the months following the closing.