Birmingham's The Summit has a new owner for the first time since it was built, as Federal Realty Investment Trust announced it acquired the sprawling U.S. 280 shopping destination for $508 million, or $498 million on a net basis. The deal marks the first sale in the 100-acre center's history, with the property passing from its original developer to the publicly traded real estate investment trust.
A Landmark Sale on Birmingham's Busiest Retail Corridor
The acquisition, announced Wednesday, covers the entirety of The Summit, a roughly 870,000-square-foot open-air property developed over more than 30 years, according to Federal Realty Investment Trust. The company's release describes the deal as the first sale in The Summit's history, acquired directly from the original developer. Separately, InBirmingham has described the center as a 1 million-square-foot upscale lifestyle center, a figure that differs from Federal Realty's own square footage estimate.
The Summit sits at the intersection of Interstate 459 and U.S. 280, wedged between Mountain Brook and Vestavia Hills, and houses more than 110 retailers and restaurants. Tenants include Apple, Trader Joe's, RH, Alo Yoga, Sephora and North Italia, with more than 30 of those businesses operating their only Alabama location at the property, the real estate trust's release states. Federal Realty reports the center is 92% occupied and draws nearly 9 million visits each year from shoppers traveling from as far as 100 miles away.
Fresh Retail Commitments Signal Momentum
Recent tenant commitments at The Summit include Aritzia, Reformation and LoveShackFancy, the real estate trust says. Those additions build on a broader wave of 2026 arrivals that, per Alabama NewsWire, include Aritzia, PopUp Bagel and Vuori as first-to-Alabama arrivals alongside other expanded or returning retailers.
WBMA, which first reported the deal, notes that the transaction added The Summit to Federal Realty's Central Region portfolio, a grouping of seven properties totaling roughly 2.7 million square feet spread across Birmingham, Chicago, Kansas City and Omaha, according to WBMA. The station's report also states Federal Realty expects the acquisition to immediately boost its funds from operations per share and create chances to raise rental income through lease renewals and new leases.
How Federal Realty Plans to Pay for It
Federal Realty says it intends to fund the purchase over the long term using a mix of asset sale proceeds, free cash flow and proceeds from its recently issued convertible notes, per the company's own announcement. The deal's roots trace back to 2022, when The Summit's original developer, Bayer Properties, sold its property management and leasing portfolio to Dallas-based Centennial, according to AL.com. That same report notes Hoover announced earlier this year that the Riverchase Galleria was entering the real estate market, adding another major Birmingham-area mall to the list of properties in motion.
A Tight Market for Prime Retail Space
The sale lands amid what REBusinessOnline describes as a competitive leasing environment across Birmingham, where high-quality space in established corridors remains limited. The outlet reports that demand stays strong among quick-service restaurants, boutique fitness operators, medical and service retailers, and fast-casual and high-end dining concepts, while residential growth stretching into Shelby County has sustained appetite for retail space along U.S. 280. Premier centers like The Summit, the same report notes, can command some of the highest retail rents in Alabama as the broader market tilts toward experiential, mixed-use destinations.
That shift is visible elsewhere along the corridor. Lane Parke in Mountain Brook opened its first phase in 2016 and a second phase in 2021, blending boutique retail, restaurants, luxury apartments and hospitality, while Stadium Trace Village in Hoover established itself as a dining and lifestyle destination after opening in 2019, per REBusinessOnline's reporting. The outlet also notes that ownership of Brookwood Village, a former regional mall along U.S. 280 between Homewood and Mountain Brook, has begun evaluating concepts that could transform that site into a mixed-use district too.
