BETHESDA, Maryland–(BUSINESS WIRE)–JBG SMITH (NYSE: JBGS), a leading owner and developer of high-quality mixed-use properties in the Washington, DC market, has entered into a definitive agreement with affiliates of Fortress Investment Group LLC ( “Fortress”) to form a joint venture to recapitalize a portfolio of seven 1.6 million square foot office properties owned by JBG SMITH and valued at $580 million.
The portfolio includes 7200 Wisconsin Avenue in Bethesda, MD, 1730 M Street in Washington, DC, RTC West I, II and III in Reston, VA, and Courthouse Plaza I and II in Arlington, VA. The properties are all located in amenity-rich, metro-serviced locations in the Washington, DC area. The transaction is expected to close in the first half of this year, subject to financing and customary closing conditions.
“In 2021, we announced our intention to sell at least $1.5 billion of non-core office and land assets, primarily outside of National Landing, to reduce our balance sheet and provide capacity for multi-family development. and share acquisition and buyback opportunities,” said George Xanders, JBG SMITH Chief Investment Officer. “This partnership with Fortress, a leading investment management firm, accelerates our capital recycling initiatives and advances our planned shift of our portfolio to majority multifamily, with a concentration of offices in National Landing.”
“We are honored to partner with JBG SMITH to accelerate the company’s strategic transition and solidify its position as a leading owner and developer of sustainable, amenity-rich, mixed-use properties in the DC market,” said said Fortress chief executive Apostolos Peristeris. “Thanks to JBG SMITH’s deep expertise and the strong competitive position of these office properties, we see significant opportunities for profitable growth across this portfolio in the years to come. »
Eastdil Secured acted as exclusive advisor to JBG SMITH in the transaction.
About JBG SMITH
JBG SMITH owns, operates, invests and develops a dynamic portfolio of mixed-use properties in the high-growth, high-barrier-to-entry submarkets in and around Washington, DC. With a focus on creating place, JBG SMITH cultivates vibrant, amenity-rich, walkable neighborhoods throughout the Washington, DC metro area. More than half of JBG SMITH’s holdings are in the National Landing submarket in Northern Virginia, where it serves as a developer for Amazon’s new headquarters, and where the planned new innovation campus is located. billion dollars by Virginia Tech. JBG SMITH’s portfolio currently includes 17.1 million square feet of high-growth office, multi-family and retail assets, 98% of which are serviced by metro. It also maintains a development pipeline encompassing 16.6 million square feet of mixed-use development opportunities. JBG SMITH is committed to the operation and development of green, smart and healthy buildings and plans to maintain carbon neutral operations each year. For more information about JBG SMITH, please visit www.jbgsmith.com.
About Fortress Investment Group
Fortress Investment Group LLC is a leading highly diversified global investment manager. Founded in 1998, Fortress manages $54.2 billion in assets under management as of September 30, 2021 on behalf of approximately 1,800 institutional clients and private investors worldwide across a range of credit and real estate strategies , private equity and permanent capital investment.
Certain statements contained herein may constitute “forward-looking statements” as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not guarantees of performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Accordingly, the future results of JBG SMITH Properties (“JBG SMITH” or the “Company”) may differ materially from those expressed in such forward-looking statements. You can find many of these statements by searching for words such as “approximate”, “believes”, “expects”, “anticipates”, “intends”, “plans”, “proposes”, ” could”, “could” or similar expressions in this press release. We also note the following forward-looking statements: total square footage, valuation and closing date of the transaction. Many of the factors that will determine the outcome of these statements and our other forward-looking statements and plans are beyond our ability to control or predict. These factors include, among others: adverse economic conditions in the Washington, DC metropolitan area, timing and costs associated with development and real estate improvements, financing commitments and general competitive factors. For more information about factors that could materially affect the outcome of our forward-looking statements and other risks and uncertainties, see “Risk Factors” and the Caution Regarding Forward-Looking Statements in the Company’s Annual Report on form 10-K for the year. ended December 31, 2020 and other periodic reports that the Company files with the Securities and Exchange Commission. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on our forward-looking statements. All subsequent written and oral forward-looking statements attributable to us or anyone acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We undertake no obligation to publicly release any revisions to our forward-looking statements after the date hereof.