This Week's D.C. Deal Sheet
JBG Smith has launched a new impact investing subsidiary targeting workforce housing.
The Bethesda-based REIT launched LEO Impact Capital, aimed at “acquiring, operating, and preserving middle income housing in rapidly growing neighborhoods vulnerable to rising housing costs," it announced Wednesday.
AJ Jackson, who most recently served as the company’s executive vice president of social impact investing, was named president of LEO Impact Capital to lead the effort.
JBG’s $115M Impact Pool, which launched in 2018, will be consolidated under the new subsidiary. The firm said the fund reached its goal of helping create and preserve 3,000 multifamily units earlier this year, ahead of its 2025 timeline.
“We have grown our impact investment operation significantly since launching our first social impact investment vehicle in 2018,” Jackson said in a statement. “As a result, consolidating our investment, asset, and portfolio management activities under a dedicated impact platform will allow us to continue to grow and best serve our residents, investors, and partners going forward.”
LEASES
Barry's, a high intensity interval training studio, is coming to The Yards, Brookfield announced this week. The gym, which provides group fitness experiences, is set to open a 4,760 SF facility at the Boilermaker Shops at 300 Tingey St. SE, the former Unleashed by Petco space. It’s the third Barry’s in the DMV area and is expected to open in early 2025. The 25-year-old company boasts more than 85 studios across 14 countries.
SALES
Local private equity firm StoneBridge Investments acquired an apartment community in Manassas, it announced in a press release. It purchased Palisades at Manassas Park, a 304-unit development at 8100 Palisades Circle. The seller and price were not disclosed, but New York-based Pantzer Properties purchased the community in 2020 for $71M, rebranding it as The Point at Palisades.
The seller was represented by Berkadia’s Walter Coker and Brian Crivella, per the release. The property includes a swimming pool, fitness center, clubhouse, playground and pet park.
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A 383K SF office building in downtown D.C. was acquired by its lender at a foreclosure auction Thursday. Starwood Property Trust purchased 1200 K St. NW near Franklin Park for $44,026,439. Other investors were in attendance, but no one else placed a bid. The foreclosure was on a $120M loan that Starwood issued in 2021 to prior owner Brookfield and its partner AustralianSuper.
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A transit union purchased a 52K SF property on Dupont Circle for its new headquarters this week. Amalgamated Transit Union, which represents more than 200,000 workers across the U.S. and Canada, paid $13.8M for the eight-story, 1970s-era office building at 21 Dupont Circle NW. The building had been owned by a family office, EFO Capital Management, since 1997. The union said it is under contract to sell its former Silver Spring headquarters at 10000 New Hampshire Ave.
MILESTONES
Pre-leasing has begun for two apartment towers totaling 572 units at Stonebridge’s Potomac Yard mixed-use development, Oakville. The Ives and Raeburn buildings are taking applications for move-ins in July and August, respectively. Residents will have access to more than 10K SF of private outdoor courtyard space, including two activated lawns and shared amenity spaces.
The rest of the Oakville development is set to include an Inova healthcare facility, a self-storage facility, a park and retail tenants Founding Farmers, Dok Khao Thai Eatery, YogaSix and N&J Nails. Townhouse community Del Ray Corner at Oakville opened this spring.
