JV Partners to Develop Two Million-SF National Landing Project

ALEXANDRIA, VA – JBG Smith and J.P. Morgan Global Alternatives have entered into a joint-venture partnership to design, develop, manage and own a new two-million-square-foot mixed-use development at Potomac Yard in Alexandria, VA.

The new development will commence the next phase of Potomac Yard’s redevelopment, which is located the southern portion of National Landing.

The project encompasses two multifamily buildings, totaling 419,000 square feet, which JBG Smith plans to commence construction on within the next 12 months. The development’s remaining 1.6 million square feet of mixed-use space is expected to be developed over time.

The project’s two million square feet of development sites are situated one mile south of Amazon’s new headquarters and are located directly adjacent to Virginia Tech’s $1 billion Innovation Campus, which JBG Smith is currently master developing.

For the development, institutional investors, advised by J.P. Morgan Global Alternatives, contributed one land site that is entitled for 1.3 million square feet of development at Potomac Yard Landbay F. JBG Smith contributed an adjacent land parcel that is entitled for more than 700,000 square feet of development capacity at Potomac Yard, Landbay G.

JBG Smith holds a 50% ownership stake in the joint-venture project, and the firm will serve as pre-developer, developer, property manager and leasing agent for all future properties on the site.

JBG Smith has served as Potomac Yard Landbay F’s master developer since 2013.

With this recent transaction, JBG Smith’s at share ownership of development rights in Potomac Yards increased by more than 285,000 square feet, which expands 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,” states Ed Chaglassian, EVP 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.”

“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,” says Preston Meyer, managing director of J.P. Morgan asset management, real estate Americas.