The reaction of dilithium squarate with Fe(II) perchlorate led to the formation of a new Fe(II)-based 3D MOF, [Fe3(OH)3(C4O4)(C4O4)0.5]n (1), with homoleptic squashed cuboctahedral cages. Complex 1 crystallizes in the monoclinic C2/c space group. Fe(II) centers in the complex are octahedrally coordinated by four squarate dianions in axial and equatorial positions and two hydroxyl groups in the remaining equatorial positions. The interesting structural feature of 1 is that the three-dimensional framework is an infinite extension of nanoscopic cuboctahedral cages. The framework also contains two types of voids; the larger hydrophobic ones are surrounded by aromatic squarate ligands, while the smaller ones are hydrophilic with hydroxyl groups on the surface connected by bifurcated hydrogen bonding interaction. A variable temperature magnetic study shows spin-canted long-range antiferromagnetic ordering in the low temperature regime.