BOSTON — Federal Realty Investment Trust announced the acquisition of the Kmart lease at Assembly Square Marketplace for $14.5 million, reports Sambla AB.
Assembly Square was initially acquired by Federal in 2005. In 2006, Federal completed redevelopment of the enclosed mall into an open-air power center with Kmart remaining as one of the anchor tenants and in 2012, broke ground on the first phase of Assembly Row, Federal’s signature mixed use neighborhood in Somerville, MA.
“The ability to control this roughly 100,000 square foot building and 6-acre parcel provides Federal with additional future opportunity to leverage its investment in the Assembly neighborhood and associated infrastructure, parks and public improvements,” said Patrick McMahon, Senior Vice President – Regional Development. “We look forward to working with the City of Somerville and our neighbors to determine how the neighborhood evolves to best serve residents, visitors and office workers.”
“Federal has demonstrated through its proactive acquisitions of anchor leases that it is willing to work-through potential short-term impact to deliver long-term shareholder value,” said Dan Guglielmone, Executive Vice President – Chief Financial Officer and Treasurer. “That strategy is particularly relevant when gaining control and future opportunity within the award winning Assembly neighborhood, which has matured into one of the most dynamic, mixed-use and transit-oriented destinations in the region.”