JLL arranges $83.02 million financing for 550 Arsenal St. anchored by Target

Watertown, MA JLL Capital Markets has arranged a $83.02 million acquisition financing for 550 Arsenal St., a 260,867 s/f shopping center.

JLL represented the borrower, National Development, in securing a fixed-rate loan through Wells Fargo.

550 Arsenal St. is located in the town’s East End, adjacent to Arsenal Yards mixed-use destination. The property is anchored by a popular Target location, with Best Buy, the Massachusetts Registry of Motor Vehicles and Chase Bank rounding out the current tenant roster.

The city has emerged as a premier retail corridor with Boston’s first-class real estate market, located eight miles west of downtown Boston and seven miles west of Kendall Sq. The area has experienced a 13.7% population increase since 2010 and benefits from favorable demographics including a $153,000 average household income.

JLL Capital Market’s Debt Advisory team representing the borrower was led by managing directors Henry Schaffer and Andrew Gray, associate Sam Wiesman and analyst Joe Marinaro. 

“The retail market in the Northeast is at near record high occupancy levels, with very little new supply coming to market. It’s rare to find value-add opportunities in centers as dominant as 550 Arsenal,” Schaffer said. 

“Exceptional debt market liquidity combined with limited supply of premium retail assets has created intense lender competition, with capital sources aggressively pursuing the few quality opportunities and delivering attractive financing terms.”