JBG Smith Sells 2 Reston Office Buildings For $95M
JBG Smith has sold a pair of Reston office buildings as the REIT continues its strategy of recapitalizing its portfolio.
The Montgomery County-based developer sold Summit I and II to Brookfield Property Partners for $95M. CBRE's Tom Cleaver, Dan Grimes and Rob Faktorow brokered the deal.
The adjacent office buildings total 290K SF and are 100% leased. The site allows for another 700K SF of density to be added. The properties sit at 2000 and 2002 Edmund Halley Drive, just off the Dulles Toll Road. JBG Smith also sold a portion of the land to the Metropolitan Washington Airports Authority, which controls the toll road, for $2.2M.
“The sale of Summit I and II is consistent with our strategy to take advantage of market conditions to recycle capital, deleverage our balance sheet, and reinvest the proceeds in higher-yielding growth opportunities," JBG Smith CEO Matt Kelly said in a release.
Kelly signaled JBG Smith's shift to selling more properties in his Q4 earnings letter to investors last month, explaining that the REIT sees D.C. as a seller's market. He said the company has identified opportunities to generate $700M of capital, focusing on selling and recapitalizing assets in areas where it projects slower growth.
