CASE STUDY: Cityline at Tenley

Washington, D.C.

We acquired a vacant urban department store out of bankruptcy and successfully transformed the failed retail structure into a grand mixed-use complex featuring Washington, D.C.’s first Best Buy and Container Store along with over 200 residential condominiums.

The Opportunity

In 1999, a retail building in Washington, D.C.’s highly affluent Tenleytown neighborhood was about to be auctioned off.  The property was ideally situated above a mass transit station and had previously been occupied by a regional hardware superstore.  Its prime location produced fierce competition among prospective buyers, including Madison Marquette.

The Vision

We had an advantage over our competitors because we saw an opportunity that others did not.  We knew housing in Tenleytown was in great demand and that we could realize far greater value in the project by adding a residential component.  This realization enabled us to outbid our competitors and begin execution of our mixed-use vision.

The Challenges

The project faced several challenges, including concerns from both local government officials and the local historic preservation board.  These concerns were quickly addressed when the community saw our plan to preserve the structure’s historic art-deco façade and considered our expertise in executing these types of projects.  We also faced initial resistance from big box retailers who questioned a site where two previous tenants had failed.  However, our quantitative and qualitative analysis of the site and the market proved persuasive.

The Result

In 2003, we finished transforming 4500 Wisconsin Avenue into Cityline at Tenley.  The award-winning project boasted the city’s first Best Buy and Container Store – both of which have enjoyed tremendous success.  The over 200 residential condominiums were almost entirely sold out before construction was complete and Madison Marquette successfully sold the project’s retail component in November 2005.