JBG SMITH Acquires Tysons Dulles Plaza

Business Wire

3 hours ago

BETHESDA, Md.--(BUSINESS WIRE)--JBG SMITH (NYSE: JBGS), a leading owner, operator, and developer of high-quality, mixed-use properties in the Washington, DC market, has acquired Tysons Dulles Plaza, a 15-acre office campus in the heart of Tysons, Virginia.
The three-building campus encompasses approximately 500,000 square feet of offices and 1,553 parking spaces. Tysons Dulles Plaza is walkable to the Silver Line's Spring Hill Metro station and immediately adjacent to Route 267, the Dulles Toll Road. It benefits from Northern Virginia's continued attraction of major corporations and government contractors drawn by the region's highly educated talent pool, excellent transportation infrastructure, and robust business ecosystem.
JBG SMITH intends to re-entitle and redevelop one of the three office buildings for residential use. The other two buildings will be enhanced and modernized and remain in long-term operation for office tenants.
'Notwithstanding regional economic headwinds and the negative impact of remote work on the office sector, we see distress leading to extremely attractive office investment opportunities for the first time in more than a decade,' said George Xanders, Chief Investment Officer at JBG SMITH. 'We are actively exploring additional office investments, similar to Tysons Dulles Plaza, especially where we can apply our proven mixed-used redevelopment expertise.'
JBG SMITH's acquisition of this multi-building office park aligns well with its track record in transforming similar office environments via redevelopment, repositioning, and placemaking demonstrated across the DC metro area – most recently in National Landing.
'Our recipe for success in National Landing has informed our blueprint for investing in and redeveloping underperforming assets elsewhere in the region,' said Evan Regan-Levine, Chief Strategy Officer at JBG SMITH. 'In National Landing we were able to reduce the stock of operating office buildings and transform many of them into new residential and retail offerings – aligning with lower levels of net demand for office – while also improving the desirability of the neighborhood. We see the same opportunity at Tysons Dulles Plaza.'
JBG SMITH intends to seek similar new investments in the market that offer the most accretive returns and that align with its strategy and competitive advantages including well-located office, such as Tysons Dulles Plaza, at historically favorable pricing.
About JBG SMITH
JBG SMITH owns, operates and develops mixed-use properties concentrated in amenity-rich, Metro-served submarkets in and around Washington, DC, most notably National Landing, that we believe have long-term growth potential and appeal to residential, office and retail tenants. Through an intense focus on placemaking, JBG SMITH cultivates vibrant, highly amenitized, walkable neighborhoods throughout the Washington, DC metropolitan area. Approximately 75.0% of JBG SMITH's holdings are in the National Landing submarket in Northern Virginia, which is anchored by four key demand drivers: Amazon's headquarters; Virginia Tech's $1 billion Innovation Campus; proximity to the Pentagon; and our placemaking initiatives and public infrastructure improvements. JBG SMITH's dynamic portfolio currently comprises 11.9 million square feet at share of multifamily, office and retail assets, 98% of which are Metro-served. It also maintains a development pipeline encompassing 8.9 million square feet of mixed-use, primarily multifamily, development opportunities. JBG SMITH is committed to the operation and development of green, smart, and healthy buildings and plans to maintain carbon neutral operations annually. For more information on JBG SMITH please visit www.jbgsmith.com.