Mack-Cali Realty Corp. will pay $46.5 million to become a partner in a 377-unit luxury apartment project in Washington, D.C., continuing the company's aggressive push into the booming multifamily sector.
The real estate giant has entered into agreements to acquire a 50 percent interest in the development through a joint venture with New York-based Fisher Bros., according to an announcement Monday
. The project is currently under construction at 701 2nd
St. NE, one block from the city's Union Station, and is expected to be complete by mid-2015.
Plans for the site also call for 25,000 square feet of retail space and a 309-space underground parking garage, Edison-based Mack-Cali said in a news release.
The deal also provides for a "right of first offer" on all development deals in the D.C.-metro area that involve either party, the news release said. Meantime, the venture will form a property and asset management platform to oversee the new site and future assets, using the services of Mack-Cali's Roseland subsidiary
The move by the real estate investment trust, a longtime commercial property powerhouse, is the latest of many over the past year as it dives into the multifamily market. The company acquired Roseland Property Co. last fall, leading to a wave of acquisitions and activity on residential construction projects.
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