A joint venture of Edison, NJ-based Mack-Cali Realty Corp. (NYSE: CLI
) and Fisher Brothers has closed the acquisition of a multifamily project under construction at 701 2nd Street, NE in Washington, D.C.
The 377-unit project in the H Street submarket, first reported last month,
includes about 25,000 square feet of retail space and a 309-space underground parking garage. Mack-Cali acquired a 50% interest in the project for a purchase price of about $46.5 million.
The venture has 20-year in-place debt of $100.7 million for the project expected to be completed by mid-2015, with leasing beginning in the first quarter of 2015.
The Mack-Cali/Fisher Brothers JV includes 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, VA.
The venture will also form a wholly owned property and asset management platform for the branding, marketing, leasing and management of the property and any future assets acquired by the venture. Mack-Cali's Roseland subsidiary will run the day-to-day operations of the assets, including the leasing and management of 701 2nd Street, NE.
The architectural firms of Hickok Cole Architects, Rockwell Group, COOKFOX, and Handel Architects are involved in the design and development of 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.