RBC Lends $150M on Redevelopment of Former Friendship Heights Mall in DC
By Andrew Coen June 15, 2023 4:08 pm
reprints
Tishman Speyer has sealed $150 million of construction financing for its planned mixed-use project at the site of the former Mazza Gallerie mall in Washington, D.C., the developer announced Thursday.
RBC Capital Markets supplied the loan for Tishman Speyer’s transformation of the former shopping center in D.C’s Friendship Heights neighborhood into a seven-story, mixed-use development featuring 320 apartments and 90,000 square feet of retail space. Demolition of the existing three-story structure is underway, with the project’s completion slated for 2025.
Tishman Speyer acquired the Mazza Gallerie site in May 2021 for a reported $52 million from Annaly Commercial Real Estate Group. Annaly had previously purchased the property from a foreclosure auction in August 2020 for $38 million.
“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,” Paul DeMartini, senior managing director at Tishman Speyer said in a statement.
The residential portion of the Tishman project will include apartments ranging in size from studios to three bedrooms, with 40 designated as affordable housing. The property’s amenities will include a courtyard pool, a sundeck, private conference rooms, a golf simulator, a roof deck with event space, a fitness center and tenant lounges.
The ground-floor retail planned by Tishman Speyer will feature a mix of boutique stores, fast-casual eateries and full-service restaurants. Tishman Speyer will also maintain the mall’s 70,000-square-foot retail concourse anchored by TJ Maxx.
The redevelopment will also consist of 800 below-grade-level parking spots. Denmark-based architect 3XN is designing the project in partnership with architect Eric Colbert & Associates.
“Given its prominent location and expansive Wisconsin Avenue frontage, the redeveloped Mazza Gallerie will serve as a gateway to the Friendship Heights neighborhood as well as the District of Columbia as a whole,” Jens Holm, a 3XN partner, said in a statement.
Officials at RBC did not immediately return a request for comment.
Andrew Coen can be reached at acoen@commercialobserver.com
