(Updated at 1:45 p.m. on Jan. 5) The new owner of 628 King Street is shopping the property around, and wants it to remain two retail spaces.
Douglas Development now owns three of the four buildings at the intersection of King and Washington Streets. The D.C.-based commercial real estate firm owns the adjacent properties at 700 (Lululemon) and 701 King Street (the now-closed Le Pain Quotidien), as well as 610 King Street (Anthropologie), 614 King Street (H&M) and 615 King Street (the former Walgreens) and 700 King Street.
Douglas Development bought the property on Dec. 10, and representatives of the firm say there has been some interest from prospective tenants, although nothing definite. The building was previously owned by the family of Wellington Goddin, and was appraised for $6.2 million last January.
GAP Inc. has leased the three-level, 20,000 square-foot building at 628 King Street since 1986, where it has long been home to a Banana Republic and Gap Outlet store, which will permanently close on Jan. 24. Staff at both stores said Gap Outlet was underperforming at the space, with most business coming in on weekends.
Commercial real estate firm KLNB’s represented Douglas Development in the purchase of the building, and is managing its next steps.
The owners plan on splitting the property into two units, keeping the uses as retail and renting them out as soon as possible.
The firm says their 652 retail transactions this year is a 39% increase over 2020 and 15% over 2019, but that property values have stayed relatively flat over the last two years.
“Brick and mortar retail also remains extremely relevant regardless of what folks may say about it being dead, as evidenced by KLNB’s transaction volume,” KLNB President and Chief Operating Officer Marc Menick told ALXnow. “All this being said, transactions are well up over 2019 levels, but value is basically flat. More deals, less value.”
The property, which has 158 square feet of frontage on King and S. Washington Streets, was originally developed as a 600-seat theatre in 1854, was converted to a Union hospital during the Civil War, changed hands through the decades and even burned down.