Federal Realty Investment Trust is considering converting

Federal Realty Investment Trust is considering converting apartments in its Santana Row project in San Jose, California, to condominiums, according to the San Jose Mercury News. The project’s 255 completed apartments were 98.8 percent leased as of mid-2004. Federal told the Securities and Exchange Commission the apartments were partly responsible for a big boost in the firm’s western regional revenue. Some analysts said Federal could cash in handsomely by selling the units, since the median price of a condominium in the county rose 11 percent in the past year, to $388,000. Ironically, Santana Row caused Federal Realty to announce that it was moving away from mixed-use main street projects in 2002. Company officials called Santana Row, a 42-acre shopping center redevelopment, too complicated and risky. Federal Realty specializes in retail.