WASHINGTON, DC - Mack-Cali Realty Corporation announced that it has entered into agreements to acquire a 50 percent interest, through a joint venture with Fisher Brothers, in a luxury multi-family project, currently under construction at 701 2nd Street, NE in Washington, D.C. The 377-unit project includes approximately 25,000 square feet of retail space and a 309-space underground parking garage. Mack-Cali will acquire a 50 percent interest in the project for a purchase price of approximately $46.5 million. The venture has 20-year in-place debt of $100.7 million with attractive terms. It is expected that the project will be completed by mid-2015, with leasing beginning in the first quarter of 2015.
The Mack-Cali/Fisher Brothers joint venture includes specific provisions, including a "right of first offer" on all development deals in the D.C. metro area that involve either party, with specific qualifications on any properties in Arlington County, Virginia. The venture will also form a property and asset management platform responsible for the branding, marketing, leasing, and management of the subject property and the joint venture's future assets. This platform, which is wholly owned by the venture, will engage the services of Mack-Cali's Roseland subsidiary to run the day-to-day operations of the assets, including the leasing and management of 701 2nd Street, NW.
The team of professionals involved in the project includes the architectural firms of Hickok Cole Architects, Rockwell Group, COOKFOX, and Handel Architects. In addition, 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.
Located in the H Street submarket, the site fronts H Street, one of the trendiest streets with restaurants and nightlife. Residents will benefit from being approximately one block from Union Station, including the Union Station Metro Stop on the Red Line. Residents will be able to take advantage of the new Streetcar on H Street, the first of several streetcars planned in the District, which will connect the project to 14 blocks of restaurants and shopping.
Units will feature high-end finishes including hardwood flooring throughout, two-toned custom European cabinetry with stone countertops, stainless steel appliances, and custom vanities and sinks with ceramic tile and modern fixtures. The property will offer residents an impressive amenity package including a fitness center with yoga and spin studios, a clubroom with gaming, a demonstration kitchen, terrariums, and technology centers. The outdoor amenities include three rooftop decks, with 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.
Mitchell E. Hersh, president and chief executive officer of Mack-Cali, commented, "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."
"Fisher Brothers is proud to partner with Mack-Cali on this exciting new project, which will add first-class residential and retail space to the D.C. market and is an articulation of our strategic growth in our nation's capital," said Winston Fisher, partner with Fisher Brothers. "We look forward a bright future on H Street."