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Amazon Executes 4.6M SF in Initial HQ2 Lease, Development Deals at National Landing
Chevy Chase, MD-based JBG SMITH executed three leases and two acquisition agreements with affiliates of Amazon.com, Inc. in conjunction with the creation of Amazon’s HQ2 at National Landing in Northern Virginia. The project is situated across the Potomac River from Washington, D.C., and spans parts of Crystal City, Pentagon City and the Potomac Yard.
Amazon executed three initial leases totaling 537,000 square feet at three existing JBG SMITH office buildings. The leases encompass 88,000 square feet at 241 18th St. South, 191,000 square feet at 1800 South Bell St., and 258,000 square feet at 1770 Crystal Dr. JBG SMITH expects Amazon to begin moving into properties by the end of 2020.
Two of JBG SMITH’s National Landing development sites, Pen Place and Met 6, 7, and 8, are being purchased for $294 million, and will serve as the initial phase of new construction associated with Amazon’s HQ2. The combined development potential for the sites is 4.1 million square feet.
JBG SMITH, which has flexibility on the timing of closing to facilitate 1031 exchange opportunities, expects to close on the Mets land sales as early as 2019, and on Pen Place as early as 2020.
JBG SMITH will also serve as Amazon’s developer, property manager, and retail leasing agent for these assets. The agreements are the result of Amazon’s announcement in November 2018 that it had selected JBG SMITH as its partner to house and develop its HQ2 locations.
For comments, questions or concerns, please contact Dennis Kaiser
- ◦Development
- ◦Lease
