WASHINGTON, DC–New York City-based Silverback Development entered the Washington DC area market last month via a joint venture with the Kossuth Foundation to acquire and restore 2001 Massachusetts Ave., NW. The Kossuth Foundation, which is dedicated to maintaining and encouraging Hungarian-American culture, is the nonprofit charity that is the successor to the previous building owner, the Hungarian Reformed Federation of America.
The new owners of the property declined to discuss pricing, noting that the site has been tied up in litigation and that the acquisition price wasn't a reflection of the fair market value for the building due to the cost of the lawsuit.
The Kossuth Foundation's goal with the building is to blend its charitable mission with a multi-use facility that can generate income, Gabe Rozsa, chairman of the Board of the Kossuth Foundation tells GlobeSt.com. One of the reasons it partnered with Silverback was that, last July when it received word it would be able to settle the related lawsuit, Silverback was able to put together a package that met its needs, Rozsa says. “We found that flexibility to be very attractive, more so than any of the other developers or financial partners at which we were also looking.”
Alan Glick, an associate with Silverback Development, tells GlobeSt.com it is aggressively pursuing other opportunities in the DC area now that it has closed on its first deal. “We like the demographics and the way the market is going,” he says. “We are very bullish on the DC market.”
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
