MRP Paid a Fraction for Gallery Place in DC
Gallery Place. photo: Universal Images Group via Getty Images
It appears MRP Realty scored at the perfect time.
The development and investment management firm acquired the mixed-use Gallery Place near Capital One Arena in Washington, D.C.’s Chinatown for $39 million, which is a sliver compared to its $225.7 million assessed valuation from earlier this year, according to the Business Journals. The nine-story property includes 228,500 square feet of office space that is less than a quarter occupied, and 260,300 square feet of retail that is 58 percent leased.
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The price of the transaction for the nine-story asset was recently revealed, but the agreement was made in March, before Monumental Sports & Entertainment reversed its plan to move the city’s professional basketball and hockey teams to Virginia, which would have significantly hindered real estate prospects in the immediate area.
Instead, the owner of the Washington Wizards and Capitals decided in favor of the city’s pledge to spend $515 million renovating Capital One Arena and the surrounding area, which includes Gallery Place. Indeed, part of that agreement includes Monumental taking an additional 200,000 square feet of “newly programmed space” at the arena and at Gallery Place.
Oxford Properties owned Gallery Place, but it was placed under receivership after the owner defaulted on $179 million in financing from Pacific Life Insurance.
Florida-based Global Fund Investments is part of the joint venture with MRP in acquiring Gallery Place. The deal is a couple weeks from closing, per unnamed sources with the Business Journals.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
