JBG SMITH announced the completion of $385 million of 10-year financing with Freddie Mac, comprising separate loans on three multifamily assets.
Wells Fargo Multifamily Capital served as Freddie Mac Optigo lender for this transaction.
The loans are floating-rate, each with 10-year terms and a five-year interest-only period, at a blended rate of LIBOR + 251 basis points. The loans are not cross-collateralized or cross-defaulted.
The collateral includes The Bartlett and 220 20th Street, both located in the National Landing submarket in Virginia, and 1221 Van Street, located in the Ballpark submarket in Washington, DC. JBG SMITH developed 1221 Van Street in 2018. The Bartlett and 220 20th Street were acquired as part of the merger transaction in 2017. All assets are currently managed by JBG SMITH.
“This portfolio financing marks another major milestone for JBG SMITH and is consistent with our strategy to primarily finance our business with non-recourse, asset-level financing,” said Moina Banerjee, EVP and Head of Capital Markets of JBG SMITH.
“With the execution of this deal, we were able to source attractively priced capital for these high-quality assets despite the current economic environment, validating our strategy to preserve borrowing capacity on multifamily assets during market downturns.”