Tenleytown’s Maxim Goes for $5 Million–to Doug Jemal
It's a prime piece of real estate, right there at the corner of Wisconsin Avenue and Brandywine Street NW. It has potential in all the mixed-use ways that make urban designers drool.
And so Tenleytown's Maxim building started out with a bidding price of $5 million today in a foreclosure auction at a downtown law firm. The previous mixed-use project for the property fell through.
When the bidding started, the scene resembled a typical recent day at the New York Stock Exchange. No one wanted to buy at the starting price. Silence. An estimated 60 people crowded around a conference table.
So then someone threw out a bid of about 2.5 million bucks, and auctioneer Tranzon was in business. Bidders then went back and forth, driving the price up to $3.7 million. Then they lost interest, perhaps considering that this strip of Wisconsin Avenue has long been a boring and unhip place to do anything in the District of Columbia.
A ceiling appeared to have been hit. $3.7 million–that was $1.3 million lower than where the bidding started. So the auction recessed for a bit, while officials from Columbia Bank discussed whether they'd move forward with the auction.
They came back and said, indeed, they'd be selling the property–not exactly a huge vote of confidence in our economic outlook.
But none other than maverick D.C. developer Doug Jemal was there to save the day. The regular-guy-projecting rich man proceeded to engage in a round of bidding against a representative from American University. The bidding ended at–surprise!!!–$5 million. Jemal came away the winner.
Afterward, I caught up with Jemal in the building's elevator. His son stood next to him with a thick roll of architectural plans under his arm.
I asked Jemal why he'd waited to up the ante until the very end. I never saw him put up his hand once during the first round of bidding. "I'm allowed to do whatever I want to do," he replied.
Reporting by Ruth Samuelson, phoned in to Editor Erik Wemple. Late additions by Ruth Samuelson.
1:16 pm
You gotta love Douglas Jemal. He may take his time and charge exorbitant rents, but the quality of his product is the best out there (Abdo being a close second).
Good recap! I especially loved this- "Then they lost interest, perhaps considering that this strip of Wisconsin Avenue has long been a boring and unhip place to do anything in the District of Columbia." HA! So true... Don't tell Sue Hemberger. She likes it juuust the way it is.
1:28 pm
It was a great auction today. There were some real heavy hitters at the auction. I just wrote a post as soon as I got back to my office on the event. If Doug's successful history proves correct - he may have just made himself another few million.
http://buildingdc.com/uncategorized/maxim-condominium-foreclosure-update/
4:29 pm
Actually, I supported IBG's application for a PUD for that site. Then again, I'd have been happy with the pool hall (or the hardware store that wanted to move in). S doesn't know wtf s/he's talking about.
The selling price and the level of interest in the site suggest that all these claims about how "NIMBYs" are scaring developers away from T'town are just BS.
12:08 pm
The real question is will there be a pool hall again?