A former car dealership property on the outskirts of Watertown Square has been acquired for a record-setting $7 million by a Newton development company.

Galen Street Development LLC, an affiliate of Newton-based Boston Development Group, acquired the 1.3-acre property at 66 Galen St. from Empire Management.

The price is the highest per square foot for a single parcel in Watertown, according to Bernard Gibbons of Associated Brokerage Group of Cambridge, which represented the seller.

The site attracted “tremendous” interest from potential buyers including those interested in a mixed-use development, retail cannabis facility and life science space, Gibbons said in a statement.

Watertown continues to attract a migration of life science companies, with SWZ Biotech recently leasing 64,000 square feet at the $400-million Arsenal Yards development. The town’s lab space inventory has increased by 56 percent over the past decade, accommodating 23 life science companies, ABG said.