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Tishman Speyer Secures $150M Construction Financing To Turn D.C. Shopping Mall Into Multifamily

A mall-to-multifamily redevelopment in Northwest D.C.'s Friendship Heights neighborhood is moving forward after owner Tishman Speyer received $150.2M in financing.

A rendering of Tishman Speyer’s multifamily project at 5300 Wisconsin Ave. NW.

The developer announced Thursday it secured financing from RBC Capital Markets to convert Mazza Gallerie, a 1970s-era shopping mall, into a 320-unit apartment development with 90K SF of retail. 

Demolition of the mall is underway, and the residential portion and first wave of retail is expected to deliver in 2025.

The mall at 5300 Wisconsin Ave. NW struggled during the pandemic, with the last retailer, TJ Maxx, shuttering in December.

Under Tishman Speyer’s redevelopment plan, the building’s three stories will become seven. It plans to preserve the 70K SF retail concourse and bring back TJ Maxx as an anchor tenant, according to the press release, which said it is searching for large-format users such as grocers and soft-goods retailers to fill the remaining space.

The development plans to add another 20K SF of ground-floor retail, for which Tishman Speyer will seek out boutique stores and neighborhood services, as well as a mix of fast-casual and full-service food and beverage options. 

“With its prime location above the Friendship Heights Metro station on the border of D.C. and Maryland, the reimagined Mazza Gallerie will blend the walkable amenities of downtown living — including local restaurants, shops, grocery stores and parks — with immediate proximity to several of the region’s long-standing premier suburban neighborhoods,” Tishman Speyer Senior Managing Director Paul DeMartini said in a press release. 

“We are thrilled to have secured financing and to take these next steps towards making our vision a reality.”

Tishman Speyer purchased the property for $52M in May 2021 from Annaly Capital Management, after that firm foreclosed on the mall's previous owner, Ashkenazy Acquisition Corp., and then Annaly won the foreclosure auction with a $38.5M bid in August 2020

Eagle Bank provided $26M in financing for Tishman Speyer's acquisition. In November 2021, D.C.’s Zoning Commission approved a mixed-use zoning change.

The project will be guided by architectural firm 3XN, with Eric Colbert & Associates advising. Davis Construction and Smoot Construction will serve as general contractors.