Union Square – its identity and its future – have been at the center of public debate since the City issued an RFQ for a Master Developer in December 2013.  The community, the City and its staff and the Somerville Redevelopment Authority deserve commendation for leading a thoughtful public discourse on which development team is most qualified to partner with us on the redevelopment of Union Square. This decision will shape the future of Union Square, our City and indeed the region.

The final four development teams – Abbey Group, US2/ Magellan, Gerding Edlen and National/ Federal – are well-qualified and therefore selecting one above the others is difficult.  Yet, upon careful viewing through the lens of our primary goals, the National Development/ Federal Realty Investment Trust team can form a long-lasting and ultimately successful partnership with the City and the community to achieve the many, varied objectives that we seek in the redevelopment of Union Square.

Local

Thomas “Tip” O’Neill famously said “All politics is local.”  So too is real estate development.  National/ Federal and the Abbey Group are the only two developer groups that are local.  US2/ Magellan is based in Chicago and has not developed a project in the greater Boston area.  Portland, OR based Gerding Edlen has developed only two projects in Boston.  The vast majority of Gerding’s experience is located along the west coast.  The Abbey Group is headquartered in Boston and while they have completed several impressive, local projects, they have never assumed the master developer role.  None of the development groups have delivered as many projects in the greater Boston region as National Development.  Not only is Newton, MA-based National the largest developer in New England, their work has earned public praise from the Mayors of Boston, Newton and Medford.  The partnership of National and Federal bring to bear a depth of local experience and relationships that are unmatched by the other teams. They have access to more retail, financial institutions, and local resources than any of the competing applicants and already understand the benefits, challenges and risks associated with each.  This team will not need a ramp-up period to understand how to develop in our City or in our region.  They will hit the ground running.

MBTA & Transit-Orientated Development

The MBTA is rapidly advancing their plans for Union Square.  The design and layout of the new Union Square T Station must be executed flawlessly to ensure our lofty economic and social goals for the area.  Immediately following selection, the master developer must engage the MBTA to ensure their planning is in concert with enabling new development and strong connectivity to both the Square and Boynton Yards.  While all of the developer groups have completed projects near rapid transit nodes, National and Federal each have separately worked with the T and have an existing, current and respectful relationship.  National’s Arborpoint at Woodland Station was built on a ground lease with the MBTA at the Green Line’s Woodland T Station.  They also completed Station Landing in Medford along the Orange Line and worked with the MBTA’s commuter rail division on projects in Woburn and Franklin.  As Somerville residents know, Federal’s Assembly project includes a new T Station, which is being executed in conjunction with many of the same MBTA personnel that are working on the Union Square station.

Job Creation & Economic Development

Successful redevelopment in and around Union Square is fundamental to realizing SomerVision’s targeted goal of creating 30,000 new jobs in our City.  In so doing, the City has the opportunity to greatly increase its commercial land use and therefore build a solid commercial tax base which should take some of the burden off our residents.  Each of the teams that responded to the RFQ possesses solid experience in commercial development.  Yet, National Development stands out for an impressive depth of local, commercial experience in employment sectors that we hope to attract to Union Square.  National has been on the front lines with over 400,000 SF of office space in Boston’s Fort Point neighborhood, aka the Innovation District, and this summer they are completing a 400,000 SF life science building in the Longwood Medical Area, a good portion of which is leased to Dana-Faber Cancer Institute.  Of all the companies with their hat in the ring, National and Federal are the only ones to successfully attract strong, growing, and financially stable companies to our area. This is what Union Square and our community needs.

Financial Horsepower

Perhaps the only guarantee in real estate is that there will be another downturn.  Redevelopment in Union Square will occur not in the next few years but over the next few real estate market cycles.  Financial staying power is not only imperative, but primary in consideration of the master developer role.  No company in the running is as well capitalized as National Development & Federal Realty.  Period.  In 2008 and 2009, following the economic recession, National acquired buildings and advanced development while Federal continued to invest in Assembly, putting their own money on the line instead of walking away.  Federal Realty invested in Somerville. They invested in us.  We cannot afford to be three years into the redevelopment of Union Square and have our partner pull out, as has happened to our friends in Quincy.

Time, Risk and Money

We make all our decisions based on how they will impact our time, risk and money. Union Square does not have the luxury of time and we cannot risk moving down a path that leads us in the wrong direction and we certainly cannot find ourselves in another downturn looking up from holes in the ground for money.