JBG Smith and Landmark Partners, an Ares Company, have sold 500 L’Enfant Plaza, a 215,000-square-foot office building in Washington DC, to German real estate manager Deka Immobilien for $167 million.
Delivered in 2019, 500 L’Enfant Plaza is a LEED Gold asset, 96% leased to seven tenants at the time of the sale.
The building serves as the Urban Institute’s global headquarters and is home to other major tenants including Cobec Consulting, Noblis, and the Office of the Inspector General for the Washington Metropolitan Area Transit Authority (WMATA).
“We continue to make progress on our capital recycling goals as we shift to majority multifamily through a combination of investing in multifamily assets and divesting of non-core office assets, primarily outside of National Landing,” said George Xanders, Chief Investment Officer at JBG Smith.
“With the sale of 500 L’Enfant Plaza, we have executed more than $92 million of dispositions in 2021, the proceeds of which will be used to deleverage our balance sheet and create capacity for future multifamily investment opportunities. We plan to continue to capitalize on the current environment to dispose of assets as the market begins to recover from the COVID-19 pandemic,” he added.