Developer Tishman Speyer has acquired Mazza Gallerie, the largely empty shopping center in D.C.’s Friendship Heights, and will redevelop it as apartments, though it appears it will retain a large retail portion as well.
Tishman Speyer issued a brief statement Tuesday saying it will build new rental housing while retaining substantial retail space and a large parking garage underground.
It offered no other details on the project, including what it paid for the property. The developer said specifics will be released at a later date.
Eagle Bank has confirmed it provided $26 million in financing to Tishman Speyer for the acquisition, and that the project will include 350 multifamily units and 26,000 square feet of ground-floor retail.
Lenders took possession of the property at 5300 Wisconsin Ave. NW at a foreclosure auction in August 2020 after its owner defaulted on loans. The resale to New York-based Tishman Speyer passes the property on to a developer with several other D.C. area projects in its portfolio, including Crossing DC Residences in Navy Yard and 2050 M Street.
In referring to the Mazza Gallerie location, Tishman Speyer regional director Jeff Chod said, “This project, on a gateway site into the nation’s capital … represents an opportunity to help meet the strong local need for high quality housing, while retaining a retail element that embraces the neighborhood.”
Mazza Gallerie, built in 1979, was once a bustling retail and dining destination, but has lost many of its large tenants in recent years. Neiman Marcus closed last year. The seven-screen AMC Mazza Gallerie movie theater closed earlier this year. Williams Sonoma and Pottery Barn area among other retailers that have left Mazza Gallerie in recent years.