Partners HealthCare to be anchor tenant in first office building at Somerville’s Assembly Row

Partners HealthCare System, the state’s largest hospital and physician organization, will consolidate administrative operations from 14 sites in eastern Massachusetts and move 4,500 non-hospital employees into 650,000 to 700,000 square feet in a new office building scheduled to open at Somerville’s massive Assembly Row development in late 2016.

The move is meant to reduce costs and boost efficiency at a time when many leases at Partners non-hospital sites are scheduled to expire between 2016 and 2018, according to Partners vice president Rich Copp. While sites in Charlestown, Wellesley, Needham, and elsewhere will close, Copp said the Partners corporate headquarters will remain in Boston.

“This is an effort to consolidate the administrative and non-hospital functions,’’ said Copp, who estimated Partners will save about $10 million a year in the move. “It’s an opportunity to be more effective and it’s part of our system-wide effort to reduce the cost of health care.’’


Partners corporate offices, where its top executives work, will continue to be in Boston because the health care system wants to remain close to Massachusetts General and Brigham and Women’s hospitals, the academic medical centers that were its founding institutions, Copp said.

Assembly Row, a $1.2 billion mixed-use project being developed by Federal Realty Investment Trust, is planned as a 45-acre redevelopment of former industrial property along the Mystic River that once housed a Ford Motor Co. factory in what is now Somerville’s Assembly Square.

The development will include outlet stores, hundreds of residences, offices, a revitalized waterfront park, and a new Orange Line MBTA station. Developers already have lined up a number of high-profile retail tenants, including the Legoland Discovery Center, Nike, French cookware maker Le Creuset, Brooks Brothers, women’s clothier Chico’s, and the ice cream shop J.P. Licks. AMC Theaters is also opening a 12-screen cinema on the property.

Among the new restaurants there will be Legal C Bar, the Mexican eatery Papagayo, and Earls Kitchen + Bar , a Canadian bistro that will open its first Northeast US location at Assembly Row. Hundreds of residences are expected to be completed along the project’s Mystic River waterfront this fall, and the stores and restaurants will begin opening next spring.

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