At January’s luncheon, Kerry Dowling (Senior Vice President of Leasing), Bridget Beckeman (Managing Director of Retail Strategies), and Maria Salvatore (Leasing Consultant) of Wilder Companies presented the most recent update of the Arsenal Yards development in Watertown. The “urban edge” location of this million square foot development at the corner of Cambridge and Boston is a significant reason for the success of leasing the project’s 250,000 SF of retail, 200,000 SF of life science office, 300 apartments, and 150-room hotel. A 10-minute drive catchment area with 250,000 residents earning an average household income of $130,000 and an average home value of $741,000 has easily captured the interest of retail and office tenants. Also key to the success of leasing has been the design of an urban-like density along the promise of free parking.
The history of the development began with the 2013 sale of Arsenal Mall to co-developers Wilder Companies and Boylston Properties, along with investors. The company initially designed a $100M retail-only mall, but then pivoted to a more mixed-use, dense neighborhood after studying local demand and participating with Watertown’s comprehensive master planning process. As Watertown was crafting its master plan vision, Wilder helped identify Arsenal Street as an area of transformation. The resulting zoning for a Regional Mixed-Use District (RMUD) allowed Wilder to add residential and life science office uses, as well as shared parking plan to optimize parking for all tenants and reduce costs. The design changed with the times upon the success of a life science lease, when a condo tower was converted into an office building instead. Existing historical buildings that were formerly used for heavy manufacturing had the structural engineering required for modern life science tenants.
Construction at Arsenal Yards began with the garage, and continued with lab offices, with all lab tenants having moved in by early 2020. All apartments will be completed by spring 2021, and a Roche Brothers grocery store with chef-driven restaurants will be delivered by the end of 2021. The Mexican, Japanese, and southern concept chef-driven restaurants set to open by the end of 2021 involve multiple entrances for an urban environment sensibility. Arsenal Yards has acted nimbly since 2020 to succeed during the pandemic: socially distant circles drawn in the park for outdoor events; outdoor seating for fast casual retailers; and parking spaces dedicated to 15-minute mobile order and curbside pickup. Majestic cinemas opened in early 2020, and after a short close at the beginning of COVID, opened again for private events. Fast casual dining and sustainability-focused brands like Allbirds reflect market trends designed for success in 2021.
