JBG SMITH Unloads 500 L’Enfant Plaza Office Building for $167M
Originally delivered in 2019 by the sellers, 500 L’Enfant Plaza is currently 96 percent leased.
“The appeal was due to it being fully leased new construction and having significant weighted average lease term; great credit and cash flow in a very exciting submarket for us right now,” Matt Nicholson, a JLL managing director, told Commercial Observer. “We had quite a bit of interest from global and domestic investors as a result.”
The buyer was not disclosed.
The 12-story building, designed by ZGF Architects, is home to the global headquarters of the Urban Institute, the Office of the Inspector General for the Washington Metropolitan Area Transit Authority and Cobec Consulting.
The sale is part of $92 million of dispositions in 2021 by JBG SMITH, with proceeds aimed at deleveraging its balance sheet and creating capacity for future multifamily investment opportunities, especially in the National Landing area, home to Amazon’s HQ2.
“We continue to make progress on our capital recycling goals as we shift to majority multifamily through a combination of investing in multifamily assets and divesting of non-core office assets, primarily outside of National Landing,” George Xanders, JBG SMITH’s chief investment officer, said in a prepared release. “We plan to continue to capitalize on the current environment to dispose of assets as the market begins to recover from the COVID-19 pandemic.”
Amenities at the property include a landscaped rooftop terrace, a fitness center and underground parking. It also offers direct access to the Metro.
Joining Nicholson on the deal in representing the sellers was JLL Senior Managing Director Jim Meisel.
Keith Loria can be reached at email@example.com.