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CPPIB Teaming Up with JBG Smith on Downtown D.C. Office Project

Pair Will Develop, Own 271,000-SF Office Building at 1900 N St.
February 26, 2018
The Canada Pension Plan Investment Board (CPPIB) is joining Chevy Chase, MD-based JBG Smith (NYSE: JBGS) in a joint venture to develop and own a 271,067-square-foot, 11-story office building currently under construction at 1900 N St., NW in the central business district of Washington, D.C.

CPPIB will commit approximately $101 million to acquire a 45% interest in the project, based on a total capitalization of about $225 million. JBG Smith will continue to develop, manage and lease the building.

"This investment fits well with our U.S. office strategy to develop and own high-quality assets in our target markets. The investment in 1900 N St. broadens our Washington, D.C. portfolio, and we expect it to deliver attractive risk-adjusted returns over the long term," said Hilary Spann, managing director, head of Americas, real estate investments, with CPPIB, in a statement.

The property was 29.6% preleased as of the third quarter of 2017. In July, law firm Goodwin Procter reached a deal to occupy 80,329 square feet across the top three floors of the building following its completion in 2019.

Matt Kelly, chief executive of JBG Smith, said the transaction reflects the continued interest from institutional investors in the Washington, D.C. market, and is consistent with his firm's strategy of partnering with well-capitalized partners and deleveraging its balance sheet.

Designed by KPS Group out of Atlanta, the glass-wrapped 1900 N St. building will feature 20,000 to 27,000-square-foot floor plates, a three-story lobby, a private rooftop with more than 8,000 square feet of indoor and outdoor amenity space, bike storage, a 4,000-square-foot fitness center and street-level retail space. It is being developed one block south of Dupont Circle at the corner of N and 19th streets.

Scott Franklin, Andrea Murray and David Ritchey are handling leasing in-house for JBG Smith, an S&P 400 company with a mixed-use operating portfolio of about 20 million square feet of high-quality office, multifamily and retail assets.

Garry Marr, Toronto Market Reporter  CoStar Group   

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