JBG Smith Lands $385M in Freddie Financing for Trio of DC-Area Apartments


JBG SMITH has secured $385 million in 10-year financing with Freddie Mac, obtaining three separate loans on a trio of multifamily assets located in the Washington, D.C. metro area. 

Wells Fargo Multifamily Capital served as the Freddie Mac Optigo lender for the deals. Each of the 10-year floating-rate loans include a five-year interest-only period, at a blended rate of LIBOR plus 251 basis points. The loans are not cross-collateralized or cross-defaulted.

SEE ALSO: Chetrit Group Sells 850 Third Avenue to Its Lender at $156M Loss

The properties consist of 1221 Van Street, a 13-story, 221-unit building in D.C.’s Ballpark submarket; The Bartlett, a 23-story property located at 520 12th Street in Arlington, Va.; and 220 20th Street, a 265-unit complex, also in Arlington.

“Securing these funds allowed us to source attractively priced capital for high-quality multifamily assets despite the current economic environment, and validates our strategy to preserve borrowing capacity on multifamily assets, which are readily financeable in the agency market, on favorable terms, during periods of adverse market conditions,” Moina Banerjee, JBG SMITH’s head of capital markets, told Commercial Observer.

The Arlington properties are situated in the National Landing submarket and were acquired by JBG together in 2017. 

“The National Landing market is poised for significant growth in the coming years and will benefit from billions of dollars of public and private sector investment, highlighted by Amazon’s new headquarters,” Banerjee said. “Its proximity to D.C., accessibility via public transportation, and pedestrian friendly downtown make it a model 21st century urban neighborhood. Our goal in National Landing is to build on the incredible foundation that is already in place and transform it into a bustling hub where technology talent and current residents can thrive.”