The deal closed after more than a year of negotiations thatsnagged on the interests that several parties held on the land,including a Japanese bank. The seller was life insurer EquitableCos., which took possession of the one-acre lot after another DCdeveloper defaulted on a loan.

Greenebaum & Rose plans to build a 200,000 sf officebuilding. CarrAmerica Realty Corp. has a contract to buy part ofthe site including the historic Hecht building, which was vacatedin 1985 when the department store moved its flagship store fiveblocks west. Plans are to build 440,000 sf of offices, 55apartments and other uses. The law firm Venable Baetjer Howard& Civiletti has lined up as the anchor tenant, with plans for a225,000-sf lease after CarrAmerica renovates the old store. Therewill also be retail development on the site, but the amount isundecided, says Reid Liffson of Greenebaum & Rose.

Development on the site it complicated not only because of itsfinancial history, but also because of zoning requirements forhistoric preservation, residences and retail space.