Madison Hotel Commands $80M

WASHINGTON, DC-The District’s renowned luxury establishment The Madison Hotel and its attached office building become the property of pension fund Multi-employer Property Trust in a deal reportedly worth $80 million. The 353-room hotel had been the property of the late Washington, DC developer Marshall B. Coyne, who built the hotel in 1962. MPT has entered into a long-term lease agreement with real estate services firms the Buccini/Pollin Group and Monument Realty LLC and the two companies have already revealed plans for a $30-million makeover of the property.

Located at 1177 15th St., the hotel was named for the nation’s fourth president, James Madison, and was opened by President John F. Kennedy when it debuted 40 years ago. Since then the Madison has played host in its European-style quarters to celebrities and political leaders from around the world. In addition to its upscale suites, the hotel–operated by Summit Hotels & Resorts until now–features 16,000-sf of meeting space and the attached office building offers 95,000 sf of space. The hotel’s proposed assessed value for 2003 is nearly $27 million. City records do not reveal the exact price paid for the property, but February 8, 2002 is noted as the official sale date.

Upon completion of the Buccini and Monument-directed multi-million renovation, the hotel will be restored to its original finery and updated to accommodate modern needs of travelers, and the adjoining building will be upgraded to a class B+ /A- office structure. “Our goal is to recapture the property’s historic leadership role in the city,” Buccini president Dave Pollin says. “While we will thoroughly upgrade and modernize the hotel and its infrastructure, we will maintain the hotel’s world-famous charm and eclectic atmosphere, attention to detail and gracious service.” Architectural firm Brennan Beer Gorman Monk is handling the design aspect and will create a connection between the two buildings that will give office tenants direct access to the hotel and its amenities, a convenience never before available in the District. Work on the property is expected to be finished next summer, at which point Buccini will be in charge of the hotel’s operations, and Monument will manage the office building.