May 20, 2024 Emily Wishingrad, Washington, D.C.

The massive Gallery Place mixed-use property next to Capital One Arena appears poised to sell at a substantial discount to its assessed value.

The pending acquisition of the 660K SF property by an MRP Realty-led joint venture, first disclosed in March, was revealed in new court documents to have a price point of $39M, the Washington Business Journal reported.

The property — made up of office, retail and condos — is owned by Oxford Properties and has been in receivership since May 2023. Court documents show the property’s 229K SF of office is nearly 86% vacant and its 260K SF of retail is about 42% vacant, the WBJ reported. Its retail tenants include Regal Cinema, Clyde’s, Planet Fitness and an AT&T store.

MRP was the winning bidder on the property in March, the WBJ first reported and Bisnow confirmed.

The price MRP has reportedly agreed to pay is less than a fifth of Gallery Place’s 2025 assessed value of $225.7M. Plummeting property values, especially for older office buildings in downtown D.C., are expected to increasingly strain the city’s budget over the next few years.

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