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JBG SMITH Accelerates Capital Recycling Initiatives Through $580 million Office Portfolio Joint Venture with Fortress Investment Group

BETHESDA, Md., February 14, 2022--(BUSINESS WIRE)--JBG SMITH (NYSE: JBGS), a leading owner and developer of high-quality, mixed-use properties in the Washington, DC market, entered into a definitive agreement with affiliates of Fortress Investment Group LLC ("Fortress") to form a joint venture to recapitalize a 1.6 million square foot portfolio of seven office buildings owned by JBG SMITH valued at $580 million.

The portfolio includes 7200 Wisconsin Avenue in Bethesda, MD, 1730 M Street in Washington, DC, RTC West I, II and III in Reston, VA, and Courthouse Plaza I and II in Arlington, VA. The properties are all located in amenity-rich, metro-served locations across the Washington, DC region. The transaction is expected to close in the first half of this year, subject to financing and customary closing conditions.

"In 2021, we announced plans to sell at least $1.5 billion of non-core office and land assets, primarily outside National Landing, to deleverage our balance sheet and provide capacity for multifamily development and acquisition opportunities and share repurchases," said George Xanders, JBG SMITH Chief Investment Officer. "This partnership with Fortress, a top-tier investment management firm, accelerates our capital recycling initiatives and advances our planned portfolio shift to majority multifamily, with an office concentration in National Landing."

"We are honored to partner with JBG SMITH to accelerate the firm’s strategic transition and cement its position as a leading owner and developer of sustainable, amenity-rich, mixed-use properties in the DC market," said Fortress Managing Director Apostolos Peristeris. "With JBG SMITH’s deep expertise and the strong competitive position of these office buildings, we see significant opportunity for profitable growth across this portfolio in the years ahead."

Eastdil Secured served as exclusive advisor to JBG SMITH in the transaction.

About JBG SMITH

JBG SMITH owns, operates, invests in and develops a dynamic portfolio of mixed-use properties in the high growth and high barrier-to-entry submarkets in and around Washington, DC. Through an intense focus on placemaking, JBG SMITH cultivates vibrant, amenity-rich, walkable neighborhoods throughout the Washington, DC metropolitan area. Over half of JBG SMITH’s holdings are in the National Landing submarket in Northern Virginia, where it serves as the developer for Amazon’s new headquarters, and where Virginia Tech’s planned new $1 billion Innovation Campus is located. JBG SMITH's portfolio currently comprises 17.1 million square feet of high-growth office, multifamily and retail assets at share, 98% of which are Metro-served. It also maintains a development pipeline encompassing 16.6 million square feet of mixed-use 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.

About Fortress Investment Group

Fortress Investment Group LLC is a leading, highly diversified global investment manager. Founded in 1998, Fortress manages $54.2 billion of assets under management as of September 30, 2021 on behalf of approximately 1,800 institutional clients and private investors worldwide across a range of credit and real estate, private equity and permanent capital investment strategies.

Forward-Looking Statements

Certain statements contained herein may constitute "forward-looking statements" as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not guarantees of performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Consequently, the future results of JBG SMITH Properties ("JBG SMITH" or the "Company") may differ materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as "approximate", "believes," "expects," "anticipates," "intends," "plans," "proposed," "would," "may," or similar expressions in this press release. We also note the following forward-looking statements: total square footage, valuation, and deal completion date. Many of the factors that will determine the outcome of these and our other forward-looking statements and plans are beyond our ability to control or predict. These factors include, among others: adverse economic conditions in the Washington, DC metropolitan area, the timing of and costs associated with development and property improvements, financing commitments, and general competitive factors. For further discussion of factors that could materially affect the outcome of our forward-looking statements and other risks and uncertainties, see "Risk Factors" and the Cautionary Statement Concerning Forward-Looking Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2020 and other periodic reports the Company files with the Securities and Exchange Commission. For these statements, we claim the protection of the safe harbor for forward looking statements contained in the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on our forward-looking statements. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to release publicly any revisions to our forward-looking statements after the date hereof.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220214005818/en/

Contacts

Investor Relations
Barbat Rodgers
JBG SMITH
Senior Vice President, Investor Relations
(240) 333-3805
brodgers@jbgsmith.com

Media
Bud Perrone
Rubenstein
Managing Director
(212) 843-8068
bperrone@rubenstein.com

Samantha Schmieder
JBG SMITH
Corporate Communications Senior Analyst
(240) 333-7706
sschmieder@jbgsmith.com