Federal Realty signs agreement for IKEA parcel

On December 11, 2012, in Latest News, by The Somerville Times

By Jim Clark

It was announced on Tuesday that 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.

While subject to final approval by both parties, Federal Realty has stated that it will use the next several months to complete its due diligence on the property and its potential development.

In a statement issued by Federal Realty, Senior Vice President for Development Don Briggs said, “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.”

Mayor Joseph A. Curtatone commented on the matter saying, “Federal Realty has already demonstrated that it shares the city’s vision for the Assembly Square district as a true urban neighborhood. 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 the 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.”

“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,” said Briggs.

 

13 Responses to “Federal Realty signs agreement for IKEA parcel”

  1. MarketMan says:

    Good news I think. My main concern is whether the zoning is appropriate for urban style development. I recently learned that most of Somerville requires suburban style parking regulations. That conflicts with urban development. Anyone care to shed light on this?

  2. A Moore says:

    Is anybody else as shocked as I am that federal got this deal? It probably will end up being called Federal City before it is done.

  3. K. Johnson says:

    Putting the control of the entire site into the hands of Federal is going to make this a HOME RUN.

    IKEA is a great retailer but ultimately a furniture store doesn’t generate the repeat business end wants and with the housing market in the tank (and furnishings weak) I think a focus on grocery stores everyday sales will make the entire project hum.

  4. MR says:

    The speed of Assembly Row??? This has taken over ten years. And so far we have 1 restaurant.

  5. Scooby Doo says:

    Waiting with bated breath for j.connelly to find the negative in this….

  6. j. connelly says:

    “MarketMan” good point..”shed light on it”? This is Somerville which has a proven history of “Da envelope puhleeeez” or as our former state Rep Vinny P said to the undercover FBI…he needed dough “to grease a few palms”.
    “A.Moore”…No after all this is Somerville.
    “K. Johnson” “HOME RUN” most definitely. At the taxpayers expense. mayor will be running to BOA with the last minute we gotta pass this bond tonight and float more bonds to pay for stuff the developer is suppose to pay for and again the taxpayers will get hit for the bill.

    See ‘FRIT’ had little choice but to purchase the land (they probably informed lego joe of what they need taxpayer $$$ for, before they inked the deal) . Cause if they did not make the purchase the other buyer could come in and build something that would obstruct the views from ‘FRIT’ buildings. It has happened before in other towns.

    “MR” The speed, it’s more like 14 years and the Government Center remake of the Greenline project is starting next year & with federal cuts the 2020 projected date for the greenline to Somerville??? Probably will still be on the drawing boards as historically all state building projects take way longer and historically have cost overruns in the millions to billions.

    Meanwhile the Governor “Buy My Book Deval and the Bacon Hill Gang” are more concerned with casinos and creating more toll roads, so where do you think the priorities really are?????

  7. j. connelly says:

    Common “Scooby Doo” only a “hack” would come out with a comment like yours. Then again you do have to save your or your relatives job(s)
    Some of Somerville’s past & present politicians are so blatant
    they place the info out there to hang themselves.
    I do not produce the negative…they do themselves!

  8. A. Moore says:

    I called this Federal City because it is not built for the majority of the people here in Somerville and long term residents. To do that we would have to build an Olive Garden, Country Buffet, affordable senior housing, a full size up to date hospital, Super Walmart and a Supper Market Basket. What they are building not is just for a small portion of the Somerville residents.

  9. Somervillewatcher says:

    isn’t it ironic that the opposition to ikea simply resulted in a barren wasteland surrounded by big box retail?

    And that won’t change. Ever.

  10. Ron Newman says:

    What opposition to Ikea? They got a permit from the city, then got an extension to the permit when it expired. The city was not likely to give them a *second* extension, so they withdrew.

  11. Trapped in a oil pit says:

    Best of luck to Federal for scoring that deal, but shouldn’t they man up and stand behind the hundreds of thousands of dollars of damages to abutters properties that thier subcontractors caused with the toxic fallout that has been released into the air around the Assembly Square Developemnt not to mention the damages to the abutters and neighbor’s and children’s health?
    Many keeping quiet on this one of course because they are all putting the almighty buck in front if everyone’s health and well being! Shame on all involved that turned thier cheeks that allowed this to happen!

  12. The Wizard says:

    Tis the seasom to be jolly? You tell me.

  13. A. Moore says:

    Maybe it’s not that big a problem. How far away is the mayor’s house?

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