JBG Smith Sells D.C. Office Building for $110M

The developer of Northern Virginia’s National Landing neighborhood, which includes Amazon (AMZN)’s HQ2, has sold one of its remaining buildings in Washington, D.C.

JBG Smith (JBGS), a Bethesda, Md.-based real estate investment trust, sold the roughly 375,000-square-foot office property at 2101 L Street NW to BG Ventures for $110.1 million, according to D.C. property records. The 10-story building was built in 1975 but renovated in 2007, and had an occupancy level of about 75 percent, according to JBG Smith’s third-quarter investor materials. Cushman & Wakefield (CWK) is a tenant at the building.

Bisnow first reported the deal.

The REIT and buyer also worked with the same lender to finance the property. Northwestern Mutual provided a $70 million loan to BG Ventures for the acquisition, records show. The financial services firm’s $121 million loan to JBG Smith had a maturity date of Nov. 15, per its quarterly investor materials. 

Representatives BG Ventures did not immediately respond to requests for comment. A spokesperson for JBG Smith declined to comment. 

The REIT has systematically reduced its portfolio over the past few years, one way or another, particularly in the District. At the beginning of 2023, for example, it had written off its investment in the four-building office portfolio at L’Enfant Plaza, which former lender Blackstone Mortgage Trust picked up at foreclosure auction in October.

JBG Smith has also shed some of its multifamily buildings in D.C., including the 93-unit Apartments at Westlight, which it sold to MEAG in September for about $79 million, as well as the 345-unit Fort Totten Square property, which it sold to LBX Investments and Broadwill for about $87 million that same month. 

Nick Trombola can be reached at ntrombola@commercialobserver.com.