Newmark Arranges $508M Sale of The Summit in Birmingham to Federal Realty
Newmark Group, Inc. (Nasdaq: NMRK) has arranged the $508 million sale of The Summit, an 870,000-square-foot, mixed-use lifestyle destination in Birmingham, Alabama, to Federal Realty, the firm announced Oct. 6. Newmark said the transaction is the largest single-property commercial real estate transaction in Alabama history by purchase price, citing its own research analysis of Real Capital Analytics data.
Newmark President and Head of Retail Capital Markets for North America Conor Lalor represented JDJ, a privately owned retail investor, in the sale of the asset to Federal Realty Investment Trust. The $508 million gross price equates to roughly $584 per square foot.
The Summit Sale: Deal Details
The Summit sits at the intersection of Interstate 459 and U.S. Route 280 in Birmingham, between the communities of Mountain Brook and Vestavia Hills. The open-air center occupies approximately 100 acres and opened in 1997, with later phases expanding it through about 2009. Newmark describes it as one of the Southeast's most prominent open-air retail destinations and the primary shopping, dining and entertainment hub for the Birmingham metropolitan area.
Federal Realty's acquisition announcement put the net purchase price at $498 million, or about $572 per square foot. Newmark said the property was approximately 95% leased at the time of sale, while Federal Realty has cited occupancy of approximately 92%.
"The Summit is an irreplaceable asset with a dominant market position, exceptional demographics and meaningful growth potential," Lalor said. "Investor demand for high-quality lifestyle retail continues to strengthen nationwide, and opportunities to acquire assets of this scale and quality are increasingly rare."
Tenant Mix and Leasing Momentum at The Summit
The property includes more than 110 retailers, restaurants and entertainment concepts. Tenants include Trader Joe's, Apple, lululemon, Restoration Hardware, Nordstrom Rack, Alo Yoga, Sephora and North Italia. More than 40 retailers operate their only Birmingham-area location at the center, and approximately 30 brands maintain their only Alabama location there.
Newmark said recent leasing commitments include Vuori, Reformation, Arizona, Alo Yoga, LoveShackFancy and Brandy Melville. Aritzia has also been cited among incoming tenants. Newmark said in-place rents remain below those achieved at comparable lifestyle centers nationally, indicating embedded rent-growth potential.
Trade Area and Demographics
Federal Realty said the center draws nearly 9 million visits annually from a trade area extending approximately 100 miles in every direction. The property serves a metropolitan area of more than 1.2 million people, and average household income within five miles is approximately $193,000. Newmark describes the center's demographics as affluent and its traffic volumes as significant.
Buyer and Seller
Federal Realty Investment Trust is a publicly traded retail real estate investment trust. The acquisition gives the company a presence in Birmingham. JDJ, the seller represented by Newmark in the transaction, is a privately owned retail investor. Bayer Properties developed The Summit and was its long-term owner.
Market Implications
The sale provides a high-profile data point for open-air retail investment. The 92% to 95% occupancy range, combined with in-place rents below those of comparable centers, indicates room for leasing and rent growth under new ownership. Lalor said investor demand for high-quality lifestyle retail continues to strengthen nationwide and that opportunities to acquire assets of this scale are increasingly rare.
For the 12 months ended June 30, 2026, Newmark generated revenues of more than $3.6 billion. As of that date, Newmark and its business partners operated from more than 195 offices with more than 10,000 professionals across four continents.