JBG Selling Georgetown Building To Deleverage Portfolio Ahead Of Merger
Ahead of its proposed merger with New York REIT, The JBG Cos is looking to sell its Jefferson Court building in Georgetown.
JBG has tapped HFF to help sell the property, at 1025 Thomas Jefferson St NW. The Chevy Chase-based developer bought the 317k SF building four years ago from Japanese Investment Firm N.S.P Ventures for about $80.5M, the Washington Business Journal reports.
JBG spent $5.2M renovating the property and increased its occupancy from 65% to 95%. The anchor tenant is Palantir Technologies, a California-based IT firm.
This property is just one of about $1.8B in assets JBG plans to withhold from the merger, including Rosslyn's Central Place.
At Bisnow's DC State of The Market Part 2 this morning, JBG's managing partner Matt Kelly said the company is not liquidating its portfolio, but will be selling some properties to aid the transition.
"We will be selling some assets in order to raise cash to deleverage our portfolio," Matt said, "because public markets have much less tolerance in that type of leverage than private fund investors and we get that." [WBJ]
