WASHINGTON, DC-Mack-Cali Realty is investing in a luxury multifamily project under construction at 701 2nd St., NE by Fisher Bros., through a JV with the developer. The REIT is acquiring a 50% stake in the project for $46.5 million. There is 20-year in-place debt of $100.7 million for the 377-unit project.
The project also will have approximately 25,000 square feet of retail space and a 309-space underground parking garage. It is expected to deliver by mid-2015, with leasing beginning in the first quarter of 2015.
The two companies formed a joint venture that includes a right of first offer on all development deals in the metro area involving either party. This is the first transaction under the venture.
The partnership will also form a property and asset management platform to market, lease and manage the assets.
"This project promises to be the highest end residential project in this area, and we are thrilled to partner with Fisher Brothers in our first venture, as they share the same vision for creating luxury multi-family communities as the Mack-Cali/Roseland team," Mitchell E. Hersh, president and chief executive officer of Mack-Cali, says in a prepared statement.
Indeed, the units will sport a number of high-end finishes including hardwood flooring, two-toned custom European cabinetry, stainless steel appliances, and custom vanities and sinks with ceramic tile and modern fixtures. There will be a fitness center with yoga and spin studios, a clubroom with gaming, a demonstration kitchen, terrariums, and technology centers. Other amenities include three rooftop decks, a 100-foot pool and hot tub, grilling stations and cabanas, a rooftop garden with an eco-pond and gardening plots for residents, a dog run, two landscaped gardens in courtyards, and an outdoor projection screening area.
Hickok Cole Architects, Rockwell Group, COOKFOX, and Handel Architects are involved in the project. Mack-Cali was represented in the transaction by the law firm of Greenberg Traurig LLP and Fisher Brothers was represented by the law firm of Paul Hastings LLP.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
