JBG SMITH Lands $385M Financing for Multifamily Portfolio
- Jul 24, 2020
Owner and developer JBG SMITH has closed on $385 million in financing for a three-property multifamily portfolio in the Washington, D.C. metro area.
The financing involves three separate Freddie Mac loans, each with 10-year terms and five-year interest-only periods, at a blended rate of LIBOR + 251 basis points. The loans are not cross-collateralized or cross-defaulted, according to the firm.
Two of the multifamily communities, The Bartlett and 220 20th St., are located in the National Landing submarket in Virginia, while the third community, 1221 Van St., is in the Ballpark submarket of Washington, D.C. The Bartlett and 220 20th St. were acquired in 2017 as part of a merger transaction, while 1221 Van St. was developed by JBG SMITH in 2018. All three communities are luxury, Class A properties and total 1,255 units between them.
The financing deal is part of JBG SMITH’s strategy to finance its business with non-recourse, asset-level financing, said JBG SMITH Executive Vice President & Head of Capital Markets Moina Banerjee in prepared remarks.
JBG SMITH has been developing a major footprint near Amazon’s planned HQ2 campus in Crystal City, Va. In March, the firm received the green light for its proposed two-tower residential development in National Landing, the district encompassing parts of three Northern Virginia neighborhoods, including Crystal City, Pentagon City and Potomac Yard.
The developer is planning to build a 27-story southern tower with 472 apartments and a 26-floor northern tower with 339 apartments. The development will also include site plan improvements such as a grand staircase connecting to a central park, enhanced streetscapes and public bike facilities.
The towers are part of JBG SMITH’s larger plan at National Landing, which entails the redevelopment of approximately 2.6 million square feet across five residential buildings and one office property. The projects are part of an ongoing collaboration with the county and private sector partners to deliver a master plan comprising new housing, retail, office and public spaces to National Landing.