Refinancing arranged for Prospect Union Square

BOSTON, Jan. 21, 2025 –  JLL Capital Markets announced today that it has secured a refinancing for Prospect Union Square, a newly constructed 450-unit residential property located in the vibrant Union Square neighborhood of Somerville, Massachusetts.

JLL represented the borrower, a joint venture between affiliates of Magellan Development Group, RAS Union Square Development, LLC, Cypress Equity Investments and Affinius Capital, and arranged the loan through Northwestern Mutual.

Prospect Union Square is located at 20-50 Prospect St., in the heart of the Union Square neighborhood. The complex is adjacent to the new MBTA Union Square Station on the Green Line, offering direct and quick access to Downtown Boston. Conveniently situated near the I-93 and in close proximity to key employment hubs such as Kendall Square and Downtown Boston, this is a prime residential location with excellent transit connectivity.

Somerville, located directly northwest of Boston, is a vibrant city famous for its eclectic mix of arts, culture and dining, often referred to as Boston's Hipster Epicenter. The city has robust demographics, with about 38% of its population aged 20-34 and 67% holding a bachelor’s degree or higher, indicating a highly educated workforce. In 2023, Somerville's average home value was $1.23 million, showcasing its appeal and proximity to Boston’s employment and educational centers.

Prospect Union Square, built in 2023, spans 1.25 acres and features a two-building multi-family complex. It includes a 25-story high-rise tower and a six-story mid-rise tower, offering studios, one-, two- and three-bedroom units, with 90 designated as affordable. Each unit features modern amenities such as stainless steel appliances, walk-in showers, floor-to-ceiling windows and luxury vinyl woodgrain flooring. The complex provides 18,264 square feet of available retail space, enhancing its appeal with community amenities like an outdoor pool, a courtyard, a fitness center and an indoor dog run.

JLL Capital Market’s Debt Advisory team representing the borrower was led by Senior Managing Directors Danny Kaufman and Brett Paulsrud along with Director Madeline Joyce and Analyst Ali Howard.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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Affinius Capital® is an integrated institutional real estate investment firm focused on value-creation and income generation.  With a 40-year track record and $64 billion in gross assets under management, Affinius has a diversified portfolio across North America and Europe providing both equity and credit to its trusted partners and on behalf of its institutional clients globally.  For more information, visit www.affiniuscapital.com. 

Magellan Development Group is a family-owned company that was founded in 1996. To date, Magellan is the premier developer of mixed-use properties in Chicago and has extended its footprint to other major U.S. cities, including Minneapolis, Miami, Nashville, Austin and Somerville, MA. From conception to completion, Magellan looks after all aspects of the development process and has unique experience in interrelated fields of real estate design, construction management, development, development consultation, architecture, leasing, sales and marketing. For more information on Magellan Development Group, please visit: www.magellandevelopment.com.

Northwestern Mutual has been helping people and businesses achieve financial security for more than 165 years. Through a comprehensive planning approach, Northwestern Mutual combines the expertise of its financial professionals with a personalized digital experience and industry-leading products to help its clients plan for what's most important. With over $627 billion of total assets¹ being managed across the company's institutional portfolio as well as retail investment client portfolios, more than $36 billion in revenues, and $2.3 trillion worth of life insurance protection in force, Northwestern Mutual delivers financial security to more than five million people with life, disability income and long-term care insurance, annuities, and brokerage and advisory services. Northwestern Mutual ranked 110 on the 2024 FORTUNE 500 and was recognized by FORTUNE^® as one of the "World's Most Admired" life insurance companies in 2024. For more information, visit www.northwesternmutual.com.