Somerville - Federal Realty has signed a purchase and sale agreement for the 12 acres of land being sold by IKEA in the Assembly Square district of Somerville, MA. The deal is still subject to final approval by both parties and Federal Realty will use the next several months to complete its due diligence on the property and its potential development.
"The 12 acres being sold by IKEA is extremely well located real estate - less than two miles from downtown Boston and serviced by transit. Assembly Square is closer to downtown Boston than most of Boston and sits in the heart of the innovation talent pool. The vision for the 12 acre parcel would include mixed use buildings including office, medical office, residential, and a regional grocer as a major element in the overall design plan" said Don Briggs. "We are excited by the possibility of adding to our real estate holdings here which includes Assembly Square Marketplace and Assembly Row, and further enhancing our vision of a connected urban environment for the professional, residential, retail and local community. We believe that great environments lead to a better quality of life and we are striving to create just that."
"Federal Realty has already demonstrated that it shares the City’s vision for the Assembly Square district as a true urban neighborhood," said Mayor Joseph A. Curtatone. "I think their preliminary development approach for the IKEA parcel will enhance the future of the entire district as a thriving community and a multimodal destination for shopping, dining and entertainment. No other developer in the country has more experience with projects based squarely on smart-growth, sustainable, mixed-use, transit-oriented development. The speed at which Assembly Row project is already moving confirms that the development model embraced by City and Federal Realty has already begun to maximize the project’s value as a source of private sector growth, jobs, and long-term revenues for investors, tenants, the city and its residents. I could not be more delighted about this announcement, including the grocery store component. We were sorry to lose IKEA, which has been a responsible development partner, but Federal’s plan will be even better for our city."
Assembly Square Marketplace was acquired by Federal Realty in 2005, underwent a renovation and remerchandising soon thereafter and is currently 100% leased with seven national retailers including TJ Maxx, Sports Authority, and Bed Bath & Beyond.
Assembly Row is a mixed use development currently under construction adjacent to the Assembly Square Marketplace. The neighborhood design features nine city blocks of outlet shops, dining, office space, residences, a theater and hotel. The six-acre waterfront park along the Mystic River is slated to open next summer. The park will include an amphitheater, expanded bike and walking paths, a fitness area, and a children’s garden. The new Orange Line T station is under construction and will open in the fall of 2014. Tenants announced include Legal C Bar, Papagayo, Burger Dive, and a 12-screen AMC Theater. 2
For more information on Assembly Row please visit
About Federal Realty
In 2012, Federal Realty celebrates 50 years of being a proven leader in the ownership, operation, and redevelopment of high quality retail real estate in the country’s best markets. Federal Realty's portfolio (excluding joint venture properties) contains approximately 19.1 million square feet located primarily in strategically selected metropolitan markets in the Northeast and Mid-Atlantic regions of the United States,
and California. In addition, the Trust has an ownership interest in approximately 1.0 million square feet of retail space through a joint venture in which the Trust has a 30% interest. Our operating portfolio (excluding joint venture properties) was 95.1% leased to national, regional, and local retailers as of September 30, 2012, with no single tenant accounting for more than approximately 3.1% of annualized base rent. Federal Realty has paid quarterly dividends to its shareholders continuously since its founding in 1962, and has increased its dividend rate for 45 consecutive years, the longest record in the REIT industry. Federal Realty is an S&P MidCap 400 company and its shares are traded on the NYSE under the symbol FRT. For more information, please visit
www.federalrealty.com
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