Federal Realty Launches $400M Resi-Over-Retail Pipeline with 781 Units and 7% Yields
Federal Realty has $400 million of developments underway totaling 781 units with blended yields of 7%. The Willow Grove redevelopment will convert 130,000 square feet of retail into a six-story building with 261 apartments, 438 parking spaces and 52,000 square feet of new retail starting Q2 2026.
1. Residential Development Pipeline
Federal Realty's Resi-Over-Retail pipeline comprises approximately $400 million of projects underway across four markets, underwritten to blended yields near 7%. Active developments include Bala Cynwyd, Hoboken, San Jose and Willow Grove, collectively adding 781 units to its mixed-use portfolio.
2. Willow Grove Redevelopment
In Willow Grove, Pennsylvania, Federal Realty will demolish and reposition 130,000 square feet of existing retail into a six-story mixed-use building containing 261 residential units, 438 parking spaces and 52,000 square feet of additional retail. Construction is slated to begin in Q2 2026 with delivery expected by 2028.
3. Project Costs and Timelines
Current projects carry estimated costs of $90–95 million in Bala Cynwyd (217 units, delivery 2026), $45–48 million in Hoboken (45 units, 2027), $140–148 million in San Jose (258 units, 2028) and $110–120 million in Willow Grove (261 units, 2028). The combined outlay of $385–411 million supports a multi-year development schedule and yield profile.
4. Strategic Densification Strategy
The Resi-Over-Retail model leverages existing land positions and retail demand to layer residential density, driving daily traffic, retailer performance and risk-adjusted returns. Federal Realty also has entitlements or pending approvals for nearly 3,500 additional units across its portfolio, establishing a multi-year growth runway.