NEWARK, N.J. - Prudential Mortgage Capital Company has closed a $139 million loan on behalf of its general account client for a portfolio of retail properties owned by Federal Realty Investment Trust (NYSE:FRT). The portfolio consists of four Virginia grocery-anchored properties in Arlington, Falls Church and Leesburg. Prudential Mortgage Capital is the commercial mortgage lending business of Prudential Financial, Inc. (NYSE:PRU).

Constructed between 1967 and 2002, the properties total more than 867,000 square feet and are all located in the Washington, D.C., metropolitan area. In Falls Church, Whole Foods supermarket anchors Idylwood Plaza and Giant Food supermarket anchors Loehmann’s Plaza. In Leesburg, Giant Food anchors Leesburg Plaza. In Arlington, Harris Teeter anchors Pentagon Row.

Thomas Goodsite, a principal in Prudential Mortgage Capital’s Atlanta office, arranged the five-year fixed-rate loan.

"This financing provided an attractive investment opportunity for Prudential Mortgage Capital because of the strong portfolio of grocery-anchored properties and the borrower’s experience," said Goodsite. "Prudential Mortgage Capital is committed to providing a high level of service to its clients and we look forward to working with Federal Realty Investment Trust over the life of this loan."

"The Prudential team did an outstanding job from application to closing, meeting our schedule objectives in an efficient, professional manner," stated Jeff Berkes, Federal Realty’s Chief Investment Officer. "We appreciate their collective efforts and look forward to our ongoing relationship with Prudential."

Todd Stressenger and Mark Remington of Holliday Fenoglio Fowler, L.P. (HFF) arranged the loan. "We were pleased to work with Prudential Mortgage Capital Company and Federal Realty Investment Trust to complete the financing in this difficult capital markets environment," said Stressenger.

HFF (NYSE: HF) operates out of 17 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF offers clients a fully integrated national capital markets platform including debt placement, investment sales, structured finance, private equity, loan sales and commercial loan servicing. www.hfflp.com.

Prudential Mortgage Capital Company is a national full-service, commercial and multifamily mortgage finance business with $62 billion in assets under management and administration as of June 30, 2009. Leveraging a 130-year history of real estate finance, the company offers one of the most comprehensive lines of real estate finance products and originates loans for Fannie Mae DUS™, FHA and Freddie Mac Targeted Affordable programs; Prudential’s general account; and other institutional investors. For more information, please visit www.prumortgagecapital.com.

Prudential Financial, Inc. (NYSE: PRU), a financial services leader with approximately $580 billion of assets under management as of June 30, 2009, has operations in the United States, Asia, Europe, and Latin America. Leveraging its heritage of life insurance and asset management expertise, Prudential is focused on helping approximately 50 million individual and institutional customers grow and protect their wealth. The Company’s well-known Rock symbol is an icon of strength, stability, expertise and innovation that has stood the test of time. Prudential's businesses offer a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. For more information, please visit www.news.prudential.com.