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JBG SMITH Sells Majority Stake in Ballston Office Tower
JBG SMITH has sold a majority stake in a Ballston office tower it developed more than a decade ago.
The Bethesda-based real estate investment trust sold a 90% interest in the 306,200-square-foot office tower at 800 N. Glebe Road in Arlington, the company announced in its third-quarter earnings report. The tower is valued at $79 million, according to the Washington Business Journal. JBG Smith will continue to manage and lease the property.
“These joint ventures further our strategy of attracting third-party capital partners to expand and diversify our office investment platform while enhancing the efficiency of our business through incremental fee revenue and potential carried interest opportunities,” said JBG Smith CEO Matt Kelly in the quarterly letter to investors.
The REIT also formed a venture to recapitalize the Glebe Road property, taking out a three-year, interest-only $61.3 million mortgage from Delaware Life Insurance Co. in connection with the sale. The new majority owner of the property is unknown.
