WASHINGTON, DC-Buchanan Street Partners is investing $32.8 million in equity for the acquisition of Hecht's warehouse distribution center in Downtown DC. Earlier this week, Patriot Equities revealed that it had closed on the landmark multi-building center from Macy's Inc. for an undisclosed price. It plans to redevelop the 777,000-sf complex into a mixed-use project called Patriot Yards that could either emphasis retail or office/flex and industrial use.

Buchanan acted as the joint venture equity partner and financial advisor to Patriot Equities in the deal. Besides its equity contribution, Buchanan is also negotiating $66.6 million of bridge financing.

John Pantone, SVP of Buchanan Street Partners' Chicago office says that the currently vacant property will add "considerable value" to the marketplace once it is renovated and repositioned. "Washington, DC is a market we have certainly earmarked for investment and the intrinsic real estate value of this location is especially appealing," he says.

The development the duo acquired, consists of a six-story, 550,000-sf art deco industrial building built in 1937 and five contiguous single story buildings totaling 227,000 sf. A certified historic building, the Smithsonian views the tower as one of most significant art deco buildings in the world. This is Buchanan's second investment with Patriot Equities: In 2006, the companies together acquired a 10-building office portfolio in Orlando, FL.