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A Texas real estate investor has joined the partnership leading the $1.5 billion Union Square redevelopment in Somerville, which is scheduled to begin this fall with construction of a 175,000-square-foot office-lab building and 400 residential units.
USAA Real Estate Co., the $20 billion real estate arm of financial services giant USAA, joins Magellan Development and RAS Development of Chicago as equity investors in the 2.4-million-square-foot project, which received final approval from Somerville officials last year.
At full buildout, developer US2 estimates, the project now known as USQ will create 5,300 jobs in 1.4 million square feet of commercial space. The first phase, consisting of a 25-story residential building and 7-story office-lab building, will be built on a 4-acre parcel at Prospect Street and Somerville Avenue.
USAA Real Estate’s investment strategy targets transit-oriented urban developments in markets with high barriers to entry, according to a statement, and it plans additional investments in Greater Boston.
With construction under way on the extension of the MBTA’s Green Line from East Cambridge’s Lechmere station to Somerville and Medford, developers are targeting transit-oriented sites in Somerville for office and multifamily projects.
DLJ Properties is in permitting for 570,000 square feet of commercial space and 380,000 square feet of housing on 3.4 acres off Earle Street in the Boynton Yards neighborhood, replacing parking lots and industrial buildings.
