Federal Realty Investment Trust has acquired Virginia Gateway, a 1.3 million-square-foot regional shopping center in Gainesville.
More in a press release:
Virginia Gateway, an approximately 665,000-square-foot irreplaceable regionally-dominant retail center spanning 110-acres in Gainesville, Virginia, for $215 million. The property is approximately 95% occupied and features strong tenant sales and high traffic counts in an affluent and growing market.
Situated at the intersection of Route 29 and I-66, Virginia Gateway is a prominent retail and entertainment hub with exceptional visibility and access, drawing visitors from a wide regional trade area. In 2023, the property ranked third in Virginia for annual visits, according to Placer.ai, just behind Tysons Corner. The high traffic volumes drive strong tenant sales at the property across categories, but particularly in food and beverage.
Virginia Gateway offers a diverse and unique mix of tenants and experiences across its 110-acres, organized into five distinct components:
- Giant Food grocery-anchored shopping center,
- Promenade featuring national specialty retailers and dining options,
- Atlas Walk town center,
- Plaza I & II featuring major retailers like HomeGoods and Ulta Beauty, and
- Plaza IV anchored by Total Wine & More and Hobby Lobby.
The property also benefits from shadow anchors such as Super Target, Lowe’s, and BJ’s Wholesale Club. Importantly, Virginia Gateway has approximately 300,000 square feet of small shop space which is expected to be a meaningful driver of future growth.
Aerial view of Virginia Gateway Shopping Center in Gainesville, Virginia
Gainesville, Virginia demonstrates robust demographics with the strong population supported by an influx of higher-paying jobs. The average household income within a three-mile radius of the property exceeds $184,000, surpassing the company’s in-place portfolio average. This prime suburban location offers convenient access to the Dulles Technology Corridor, known for its concentration of defense contracting and tech jobs, further enhancing Gainesville’s appeal.“We are extremely fortunate to have acquired Virginia Gateway, which is a dominant, irreplaceable regional shopping center that aligns perfectly with our acquisition strategy. A retail property of this size and scale, located in an affluent trade area at a heavily trafficked interchange, is not reproducible in today’s market environment. With the addition of this highly productive regional center, Federal Realty’s Northern Virginia portfolio grows to 3.6 million square feet, solidifying our presence in this thriving region,” Jeff Berkes, President & Chief Operating Officer of Federal Realty said.