Developer To Join Trend of Adding Apartments to Shopping Centers by Building 320 Apartments
The revamped Mazza Gallerie will feature "a striking, undulating masonry facade," Tishman Speyer said. (Tishman Speyer)
New life is being breathed into Mazza Gallerie, a mall that was previously facing decline. The project aims to reimagine the antiquated mall space, injecting new life into the prime location. One notable aspect of this redevelopment is the inclusion of a significant amount of affordable housing, a welcome addition in an otherwise expensive area.
By repurposing the mall, the developers seek to address the challenges faced by traditional malls in the changing retail landscape. The transformation of the space offers an opportunity for a fresh and innovative approach, ensuring the property remains relevant and attractive to visitors and residents alike.
The inclusion of affordable housing within the redevelopment project is a noteworthy aspect. As housing costs continue to rise in the area, the introduction of affordable units is a step towards addressing the growing need for accessible housing options. This move not only benefits potential residents by providing more affordable living spaces but also contributes to the overall diversity and inclusivity of the community.
Tishman Speyer Gets $150 Million Loan To Redevelop Outdated DC Mall
By Linda Moss
CoStar News
June 15, 2023 | 5:54 P.M.
Tishman Speyer has secured $150 million in construction financing from RBC Capital Markets, as well as the necessary permits, to proceed with its redevelopment of an outdated Washington, D.C., retail mall, where it plans to join the national trend of adding housing to shopping malls by building 320 apartments.
The New York-based developer said Thursday it will be moving forward to reimagining Mazza Gallerie in Friendship Heights, transforming it into a mixed-use development with multifamily housing and 90,000 square feet of retail. The mall was once home to high-end tenants such as Saks Fifth Avenue and Neiman Marcus.
Annaly Commercial Real Estate Group acquired the property for $38 million in a foreclosure auction sale in 2020, according to CoStar data. Then in 2021, Tishman bought Mazza Gallerie for $52 million, according to CoStar, with plans already in place to redevelop it.
Tishman, working with Danish design architects 3XN, plans to replace Mazza Gallerie’s existing three-story above-grade structure with a new seven-story building with what it described as "a striking, undulating masonry facade set atop a new glass-enclosed retail podium." The existing below-grade concourse retail and parking structure will remain.
Demolition of the existing structure is underway and completion of the residential portion and first wave of new retail openings is slated for 2025.
Other retail landlords, not just Tishman, are also adding housing to their properties. In the case of Mazza Gallerie, its luxury apartments, with 40 designated affordable, will range from studios to three-bedroom units. The mix will include two-story townhouses and penthouses with private terrace space, according to Tishman. Amenities will include a courtyard pool and sundeck, co-working space with private conference facilities, a golf simulator, a landscaped roof deck with a large event space and demonstration kitchen, a health and wellness center and tenant lounges.
Tishman will add about 20,000 square feet of new ground-floor retail "designed to maximize place-making along Wisconsin Avenue and attract top quality brands," the company said.
The target-customer mix will include boutiques, premium neighborhood services, and a mix of fast-casual and full-service food and beverage offerings, according to Tishman.
In addition, the developer said it will maintain the mall’s 70,000-square-foot retail concourse, catering to larger stores such as grocers and soft goods, which will once again be anchored by T.J. Maxx. The redevelopment will also maintain over 800 parking spots across four below-grade levels.
“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 senior managing director Paul DeMartini said in a statement.
For the Record
Davis Construction and Smoot Construction are serving as co-general contractors for the project. 3XN is partnering with Eric Colbert & Associates, which is serving as architect-of-record.
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