Federal Realty Investment Trust has sold its remaining assets on Third Street Promenade in Santa Monica, which it has owned for a quarter-century. The sale of the eight-building, 185,000-square-foot portfolio garnered $103 million, adding to a $17.2-million sale the REIT executed last October. Federal Realty did not disclose the buyer.

Including the sale last fall, the Third Street Promenade portfolio totals 147,000 square feet of retail and 60,000 square feet of office. It’s located about a quarter-mile from Santa Monica Beach. Occupancy stood at 69% at year-end 2023, among the lowest occupancy rates across a commercial portfolio averaging 94%, according to the North Bethesda, MD-based REIT’s latest annual report.

“The divestiture of our Third Street Promenade assets marks a key step in our strategy to optimize our portfolio and strengthen our balance sheet,” said Jan Sweetnam, EVP, CIO of Federal Realty. “As part of our capital recycling program, this transaction enhances our ability to invest in assets that align with our strategic growth objectives.”

He added that this approach “ensures we remain well-positioned to capitalize on market opportunities, such as our recent acquisition of Virginia Gateway, and drive sustained shareholder value.”