Gallery Place, a prominent mixed-use development in Washington, D.C.'s Chinatown neighborhood, is set to be purchased for $39 million, representing an 84% discount from its most recent assessed value of $225.7 million.
The previous owner, an affiliate of Oxford Properties, defaulted on a $179 million loan backing the property, which led to its receivership in May 2023. Court documents indicate an office vacancy rate of 86% and a retail vacancy of 42%. The development also includes 192 condominiums.
Washington D.C.'s budget is likely to be placed in more strain the next few years until commercial real estate valuations in major U.S. cities recover. The city has invested to improve the area as part of a task force launched specifically to develop a strategic vision and investment plan for the neighborhood.
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