The PenPlace development was approved by Arlington County last month to bring 3.2 million square feet of office space, more than 100,000 square feet of retail and nearly 2.75 acres of public open space to National Landing.
JBG Smith also announced it sold 1900 N Street, an 11-story trophy office building comprising approximately 261,000 square feet of office space and 9,000 square feet of street-level retail space to German company Commerz Real. The price was not disclosed.
Developed in 2019, the mixed-use office building was a joint venture between the company and the Canada Pension Plan Investment Board. JBG Smith will continue to serve as the property’s manager and leasing agent.
“These sales further advance our capital recycling strategy,” Matt Kelly, JBG Smith’s CEO, said in a prepared statement. “As we saw with the sale of Metropolitan Park to Amazon in 2020, finalizing this deal allows us to move forward with our partners, realize Amazon’s vision and complete its second home here in the region.”
In a company release, JBG Smith also championed its accelerated capital recycling plan to shift its portfolio to majority multifamily, with an office portfolio concentrated in National Landing.
“We set a target to market $1 billion of noncore office and land assets in 2022 and are well on our way to exceeding this goal with $990 million closed year-to-date,” George Xanders, JBG Smith’s chief investment officer, said. “These proceeds provide us the flexibility to invest in opportunities with the highest potential risk-adjusted returns, including share repurchases under our recently increased share repurchase plan when our stock is trading at a material discount to NAV.”
JBG Smith was not immediately available to comment further.
Keith Loria can be reached at Kloria@commercialobserver.com.