Tishman Speyer Buys Mazza Gallerie Mall For $52M, Plans Redevelopment
A shopping mall in Northwest D.C.'s Friendship Heights neighborhood is set to be redeveloped after selling at a foreclosure auction last year.
Tishman Speyer announced Tuesday it acquired the Mazza Gallerie mall at 5300 Wisconsin Ave. and plans to redevelop it with apartments and retail.
The developer bought the mall for $52M, according to a deed posted Tuesday to the D.C. Recorder of Deeds.
Tishman Speyer hasn't announced its exact plans for the project, but it said it plans to retain substantial retail space and the underground parking garage. EagleBank, which provided a $26M acquisition loan, said in a separate announcement the project is planned for 350 units and 26K SF of retail.
“All over the U.S., Tishman Speyer has been creating mixed-use environments that embrace their surrounding communities," Tishman Speyer Regional Director Jeff Chod said in a release. "This project, on a gateway site into the nation’s capital, is consistent with that vision and represents an opportunity to help meet the strong local need for high quality housing, while retaining a retail element that embraces the neighborhood.”
The sale comes after a subsidiary of Annaly Capital Management last year foreclosed on the mall's previous owner, Ashkenazy Acquisition Corp., then Annaly won the auction with a $38M bid in August.
The 294K SF shopping mall, built in 1979, sits on the D.C.-Maryland border and one block from the Friendship Heights Metro station. Multiple of the mall's anchors have closed, including Neiman Marcus late last year and the AMC movie theater in February.
Several struggling shopping malls across the D.C. region have been tapped for mixed-use redevelopments, and developers have said these properties are more attractive than vacant office buildings for converting to residential uses.
Tishman Speyer has been an active developer of apartments and office buildings in the District. In March 2020, it delivered its new office building at 2050 M St. NW, where it has signed leases with two law firms. In Q4, it delivered the first phase of its 800-unit Crossing project in Capitol Riverfront, and it expects to deliver the second phase in December.