JBG Smith Properties has finalized its exit from a 50-year-old Georgetown office building acquired a decade ago through a joint venture with CBRE Global Investment Partners, Washington Business Journal reported. The exit was formalized with a foreclosure notice for The Foundry, located at 1055 Thomas Jefferson St. NW, scheduled for auction on April 11. 

The notice indicates a $58 million debt on the property, owed to JPMorgan Chase Bank. The decision to foreclose aligns with the firm’s Q4 2023 earnings report, which excluded The Foundry from its financial metrics due to an investment of zero value and no anticipated cash flow. 

The Foundry, once a cornerstone of JBG Smith’s portfolio with 79.2% occupancy and $9.2 million in annualized rent, has seen a significant change in fortune. The foreclosure reflects JBG Smith’s strategy of divesting non-core assets.