JBG Smith and J.P. Morgan Global Alternatives have formed a joint venture to develop, manage, and own approximately 2.0 million square feet of new mixed-use development in Potomac Yard, the southern portion of National Landing in Alexandria, Virginia.
Institutional investors advised by J.P. Morgan Global Alternatives contributed a land site that is entitled for approximately 1.3 million square feet of development it controls at Potomac Yard Landbay F, while JBG Smith contributed adjacent land with more than 700,000 square feet of development capacity at Potomac Yard, Landbay G.
In addition to its 50% ownership stake in the joint venture, JBG Smith will act as pre-developer, developer, property manager, and leasing agent for all future commercial and residential properties on the site.
As a result of this transaction, JBG Smith’s at share ownership of development rights in Potomac Yard increased by more than 285,000 square feet, expanding its economic ownership interest in National Landing to 79% of all unencumbered future development density.
“We are thrilled that this joint venture will further the community’s collective long-term vision of National Landing as a thriving, transit-oriented, mixed-use destination and world-class innovation district,” said Ed Chaglassian, Executive Vice President and Head of Acquisitions at JBG Smith.
“Just as Amazon is serving as a catalyst for further private investment in offices, apartments, recreation, and public space in the center of National Landing, Virginia Tech plays a similar role in the southern portion of National Landing. This transaction will help ensure that the surrounding neighborhoods can grow in lockstep with Virginia Tech in ways that will complement and enhance its Innovation Campus,” he added.
“Potomac Yard is a rare opportunity to create an irreplaceable and differentiated community and we are very excited to partner with JBG Smith and Virginia Tech on this transformational project,” said Preston Meyer, Managing Director, J.P. Morgan Asset Management – Real Estate Americas.