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JBG SMITH (NYSE: JBGS) announced the sale of 500 L’Enfant Plaza for $167 million, part of its strategy to focus on multifamily assets. The property, which is 215,000 square feet and 96% leased, helps JBG SMITH achieve over $92 million in dispositions in 2021. Proceeds will be used to reduce debt and create investment capacity in multifamily opportunities. The sale aligns with JBG SMITH's goal to divest non-core office assets as the market recovers from COVID-19.
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Sale of 500 L’Enfant Plaza enhances capital recycling strategy.
Proceeds of $167 million will reduce debt and create capacity for future investments.
Asset was 96% leased, indicating strong demand in the market.
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BETHESDA, Md.--(BUSINESS WIRE)--
JBG SMITH (NYSE: JBGS), a leading owner and developer of high-quality, mixed-use properties in the Washington, DC market, today announced the sale of 500 L’Enfant Plaza, a 215,000 square foot asset owned through partnership between JBG SMITH (49%) and Landmark Partners, an Ares Company (51%), for $167 million.
Delivered in 2019 and designed by ZGF Architects, 500 L’Enfant Plaza is a LEED Gold® asset, 96% leased to seven tenants at the time of the sale. The building serves as the Urban Institute’s global headquarters and is home to other major tenants including Cobec Consulting, Noblis, and the Office of the Inspector General for the Washington Metropolitan Area Transit Authority (WMATA).
“We continue to make progress on our capital recycling goals as we shift to majority multifamily through a combination of investing in multifamily assets and divesting of non-core office assets, primarily outside of National Landing,” said George Xanders, Chief Investment Officer. “With the sale of 500 L’Enfant Plaza, we have executed more than $92 million of dispositions in 2021, the proceeds of which will be used to deleverage our balance sheet and create capacity for future multifamily investment opportunities. We plan to continue to capitalize on the current environment to dispose of assets as the market begins to recover from the COVID-19 pandemic.”
Jim Meisel and Matt Nicholson of Jones Lang LaSalle Americas Inc., (“JLL”), exclusively represented JBG SMITH in the sale.
About JBG SMITH
JBG SMITH owns, operates, invests in and develops a dynamic portfolio of mixed-use properties in the high growth and high barrier-to-entry submarkets in and around Washington, DC. Through an intense focus on placemaking, JBG SMITH cultivates vibrant, amenity-rich, walkable neighborhoods throughout the Washington, DC metropolitan area. Over half of JBG SMITH’s holdings are in the National Landing submarket in Northern Virginia, where it serves as the exclusive developer for Amazon’s new headquarters, and where Virginia Tech’s planned new $1 billion Innovation Campus is located. JBG SMITH's portfolio currently comprises 17.2 million square feet of high-growth office, multifamily and retail assets at share, 98% of which are Metro-served. It also maintains a development pipeline encompassing 17.0 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 annually. For more information on JBG SMITH please visit www.jbgsmith.com.
About Landmark Partners, an Ares company
Landmark Partners, an Ares company is one of the largest and most experienced investors in acquiring secondary private fund ownership stakes in the alternative asset management industry. We provide bespoke and customized liquidity solutions across the private equity and credit, real estate and infrastructure asset classes. With over 30 years of experience in the market, Landmark focuses on generating attractive risk adjusted returns through its leading industry analytics and research, robust deal origination, underwriting and portfolio management activities. As of June 30, 2021, Landmark Partners’ platform had approximately $19.5 billion in assets under management with dedicated investment and quantitative research teams located in six offices across the United States, Europe and Asia. Landmark Partners operates in the Secondary Solutions Group of Ares Management Corporation (NYSE: ARES), a leading global alternative investment manager.
Forward-Looking Statements
Certain statements contained herein may constitute "forward-looking statements" as such term is 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. Consequently, the future results of JBG SMITH Properties ("JBG SMITH") may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as "approximate", "believes," "expects," "anticipates," "intends," "plans," "proposed," "would," "should," "may," or similar expressions in this press release. We also note the following forward-looking statement: our plan to capitalize on the current environment to dispose of assets as the market begins to recover from the COVID-19 pandemic. Many of the factors that will determine the outcome of this 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, the timing of and costs associated with development and property improvements, financing commitments, and general competitive factors. For further discussion of factors that could materially affect the outcome of our forward-looking statements and other risks and uncertainties, see "Risk Factors" and the Cautionary Statement Concerning Forward-Looking Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2020 and other periodic reports 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 any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to release publicly any revisions to our forward-looking statements after the date hereof.
