Mazza Gallerie occupies a nearly two-acre parcel on a popularretail strip on Wisconsin Avenue in Friendship Heights, aneighborhood just outside of Chevy Chase, MD. Built in 1977, theproperty underwent a massive renovation in 1999 that left thepreviously three-level site with an additional floor, and added aseven-screen movie theater. The roster of about 25 tenants includessuch high-end retailers as Neiman Marcus and Saks Fifth AvenueMen's Store, as well as Ann Taylor, Mimi Maternity, Williams-Sonomaand the less upscale, but nonetheless popular Filene'sBasement.

Given the current state of the retail market in Washington,DC--the city ranks number two behind Orange County, CA on Marcus& Millichap's National Retail Index--the transaction marked awin-win deal for seller and buyer alike. "The sale is part of ourongoing review of our portfolio, and this was just the right timeto sell the property," Dan Whitney, GE vice president of GlobalCommunications, tells GlobeSt.com. TIAA-CREF could not be reachedfor comment by deadline, but numbers indicate that more suchhigh-figure investments are on the horizon.

"The flow of capital into retail real estate in Washingtonshould continue for several years due to limited opportunities fornew development and a vital and busy market," Marcus &Millichap notes in its February 2004 Retail Research Report."Investors will continue to seek retail investments, and demand forproduct will push prices higher in 2004."