JBG Smith Properties is quickly reducing its holdings in the nation’s capital.
The developer sold Fort Totten Square, an apartment complex at 5661 Third Street NE, for $86.8 million, the Washington Business Journal reported. The deal for the 425,000-square-foot complex breaks down to more than $204 per square foot.
A joint venture including an affiliate of Atlanta-based LBX Investments and Broadwill is the buyer. The partners pulled in a $60.8 million loan from Greystone to finance the acquisition. This is LBX’s entry into the Washington, D.C. market.
JBG Smith’s predecessor developed Fort Totten Square with Lowe Enterprises, opening blocks from the local metro station in 2015.
The property features a 345-unit mid-rise residential property and a 130,000-square-foot retail component anchored by Walmart. Other tenants include eateries Subway, Five Guys and Wingstop. The retail portion is fully leased, according to the Commercial Observer, while the apartments were 93.3 percent as of late June.
Ownership plans to invest in enhancements for the property, but further specifics were not reported.
JBG Smith was in the news just days ago when a large portion of D.C.’s L’Enfant Plaza complex moved closer to being sold off via a foreclosure auction. The developer wrote off the complex last year, essentially consigning the loss of two office buildings, retail spaces and common areas.
JBG Smith’s portfolio spans 13.4 million square feet of office, multifamily and retail space, as well as 9.3 million square feet of mixed-use development in the pipeline. The firm, led by Matt Kelly, is the developer of Amazon’s HQ2 in Crystal City, Virginia.
LBX popped up in Chicago two years ago, buying a 228,000-square-foot shopping center from RPT Realty for $34.6 million. The deal represented the firm’s second in Chicago as it continues to expand and diversify its assets nationwide.
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