Much like Cambridge did with Kendall Square in the 1960s and ’70s, Somerville is looking to upgrade aging industrial and commercial properties into a master-planned district that attracts industry-leading companies and thousands of well-paying jobs.
As a master developer rolls out plans for the first two parcels in Union Square, the timing of housing versus commercial uses are stirring debate. Chicago-based US2 wants to kick off development by completing 500 apartments on a key parcel next to the MBTA’s planned Green Line station by the time the trolleys start rolling in late 2017.
An executive said US2 needs the apartments to create a “sense of place” needed to attract companies for up to 805,000 square feet of office space.
“The community would like the employment base that Kendall Square has, but the challenge is how to mix that with housing and vibrant uses that last from the morning to the evening,” said Greg Karczewski, president of Union Square Station Assoc. (US2).
Given Greater Boston’s steady demand for multifamily housing, the decision to build apartments right out of the gate is hardly a surprise. But in Somerville, New England’s most densely populated city, it creates friction given the city’s economic development goal of 4,300 new jobs in the Union Square and Boynton Yards neighborhoods.
“Housing is easy to do here,” said Wig Zamore, co-chairman of the city’s Union Square Citizen Advisory Committee. “It’s one of the easiest places in the U.S. to build housing and make money at it. The hard thing is competing with a good mix of jobs that will supply a diversity of jobs to the local population and support the tax base.”
Following the apartment phase, up to 40,000 square feet of speculative office space could be built along with a 200-room hotel, according to US2’s Karczewski. The major office component, up to 600,000 square feet, would be built as tenants are signed.
“If we could find a tenant, we’d start building that tomorrow,” he said.
The game plan would be similar to Somerville’s Assembly Square, where Federal Realty started building a 300,000-square-foot shopping center before lining up Partners Healthcare as its anchor office tenant. But that mixed-use development is located in an industrial area that was in disuse for decades, in contrast with Union Square’s dense neighborhood fabric, said Anne Tate, co-chair of the citizen advisory committee.
“(US2)’s argument is people aren’t going to put their offices there when there isn’t any ‘there’ there,” Tate said. “But Union Square is there. There are restaurants. There is community. What’s not there is middle-of-the-day working people who go to the restaurants and do their shopping at lunchtime.”

Transit-Inspired Plan
Union Square redevelopment plans surfaced in recent years in anticipation of the MBTA’s $2.3-billion Green Line extension from East Cambridge’s Lechmere station to College Avenue in Medford. With a new station planned for Prospect Street in Union Square, city leaders saw a chance to replicate the revitalization that Davis Square has enjoyed since its Red Line station opened in 1984.
The redevelopment area spans 117 acres, and up to 2.3 million square feet of new commercial and residential development are envisioned.
Magellan Development Group and Mesirow Financial of Chicago have partnered previously on urban redevelopments, including the Lakeshore East and University Village mixed-use developments in Chicago. In early March, the partnership released its presentation for the first two development parcels, D2 and D3.
The proposal calls for 1.7 million square feet of development on 8.4 acres currently occupied by the Beacon Sales roofing supply company and Royal Hospitality commercial laundry.
US2 has an agreement to acquire the 4-acre Beacon Sales property and plans to negotiate with the laundry owners for acquisition of their parcel, Karczewski said.
The 500-unit apartment building on the Royal Hospitality parcel would be a catalyst for the later phases, he said.

Competing For Jobs
Somerville officials hope to establish Union Square as a bona fide competitor to job centers in Boston and Cambridge, particularly given Kendall Square’s miniscule vacancy rates for office and lab space. Union Square also is positioned to capture suburban tech and life science companies looking for a city office location to attract young employees, said Peter Bekarian, a managing director at commercial real estate brokerage JLL. US2 has hired JLL to market the office component.
“We expect we’re going to need to compete with places like Kendall Square and the Seaport and North Station that have added a lot of amenities,” Bekarian said. “They’re not just building commercial space. They’re adding to all the facets of those neighborhoods, with residential and retail in particular, and improving them in general.”
Restaurants and shops would be built on the ground floors of most of the apartment and office space. US2 has hired a retail consultant with a track record of enlivening drab neighborhoods. Jesse Baerkahn’s Graffito SP has helped Kendall Square landlords recruit independent shops and restaurants to previously all-work, no-play office and lab buildings.
In contrast to Kendall Square’s sterile environment of a decade ago, Union Square already has a rich diversity of ground-floor tenants, Baerkahn noted. One theme that emerged from community meetings: a desire for more activity during the daytime.
“There’s not much going on in Union Square in the daytime and there is that potential to create a more vibrant active scene,” he said.

Zoning Amendments Needed
US2’s ability to move forward hinges on the board of alderman’s approval of zoning amendments.
The proposed density and uses would require upzoning from the current 1.5 million square feet of development currently allowed on the two parcels. The redevelopment plan is moving forward parallel with Somerville’s update of its citywide master plan, and a proposed new zoning ordinance that would give developers more flexibility.
Aldermen are expected to vote on the citywide rezoning in June, but additional amendments specific to Union Square would take place later this year, Planning Director George Proakis said.
“US2 has started designing at the same time because they do not want to be late,” the CAC’s Tate said. “The city’s planning process got started late, so the sequencing is out of whack. But there’s an enormous amount of good will and the developers are trying really hard.”