Federal Realty Investment TrustFRT announced a long-term lease deal with Splunk Inc. SPLK for 100% of 500 Santana Row. This Class-A office building spanning 234,500 square foot is currently under construction on Winchester Boulevard and Olsen Drive and is scheduled to be completed by 2016. Splunk is a provider of software platform for real-time Operational Intelligence.
We believe that the lease with Splunk ensures steady long-term rental income for Federal Realty from this property.
Importantly, 500 Santana Row has 6 levels of office space above a 4-level parking garage containing around 670 spaces. It expands the office space offering at Santana Row that already has the 65,000 square feet office space at 300 Santana Row and another 50,000 square feet of office space positioned on the second floor above Santana Row's shops & restaurants.
Santana Row currently houses 70 shops, 20 restaurants, 9 personal service businesses, 615 rental apartments, 219 residential condominiums as well as the 214-room boutique Hotel Valencia. As such, this mixed-use development in San Jose, CA allows the real estate investment trust (REIT) to leverage the market dynamics of different sectors.
Federal Realty currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the REIT industry include Acadia Realty Trust AKR and Agree Realty Corp. ADC . Both the stocks have a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.