Union Square Residential Tower Secures $125M Refinancing

Prospect Union in Somerville.
Prospect Union In Somerville

The tallest tower in Somerville has landed a major refinancing deal.

A joint venture between Magellan Development Group, RAS Union Square Development, Cypress Equity Investments and Affinius Capital secured a $125M loan from Northwestern Mutual, according to property records.

The loan is for Prospect Union Square, a 450-unit residential property built in 2023. It sits on a 1.35-acre site in Somerville's Union Square, adjacent to the Union Square green line station.

The complex includes two buildings: a 25-story high-rise tower, the city's tallest, and a six-story mid-rise building. Of the 450 units, 90 are designated affordable. The complex also includes 18K SF of retail space, including an outdoor pool, a courtyard, a fitness center and an indoor dog run.

The buildings are part of USQ's 20-acre redevelopment next to Union Square Station. The development is planned to reach 3.8M SF, including 2.4M SF of lab space and 1,000 residential units.

Somerville is known for being the "Hipster Epicenter," with 38% of its population being between the ages of 20 and 34 and 67% holding a bachelor's degree or higher, according to a JLL release on the deal.

JLL's Danny Kaufman, Brett Paulsrud, Madeline Joyce and Ali Howard represented the borrower.

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