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SOMERVILLE, MA-Federal Realty Investment Trust acquired Assembly Square and an adjacent 220,000-sf retail and industrial complex from Assembly Square LP for $64 million. Last April, after more than six years, the city's Board of Alderman approved a zoning ordinance that paved the way for the redevelopment of the 26-acre site.

Assembly Square is an approximately 330,000-sf enclosed mall that is currently being redeveloped into a power center. Federal Realty expects to invest an additional $38 million to complete the redevelopment with stabilization anticipated within 12 months. The property is 100% preleased to national tenants including TJ Maxx, Bed, Bath & Beyond, Staples, Kmart, Sports Authority, AC Moore and Christmas Tree Shops. The acquisition also includes zoning entitlements to add four mixed-use buildings on 3.5 acres, which will include approximately 41,000 sf of retail space, 51,000 sf of office and 239 residential units.

The adjacent 10-acre parcel, which comprises approximately 220,000 sf of space, is currently 100% leased for a mix of quasi-retail and industrial uses. This parcel also includes an option to purchase adjacent land parcels from the Somerville Redevelopment Authority, all of which are zoned for mixed-use development.