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WASHINGTON, DC-San Francisco-based MacFarlane Partners and localdeveloper JBG Cos. are partnering for the first time to develop anambitious office, retail, hotel and multifamily portfolio of 93developments at 43 sites throughout the Greater DC area. The duosays these assets, which JBG contributed to the venture, will bevalued at $10 billion once the development and extensiverenovations planned are complete. The joint venture, called JBGUrban, will be seeded with $2.6 billion from a variety of sourcesincluding investment entities managed by MacFarlane Partners,investors in JBG Investor Funds I through V, JBG's principals, andthe Morgan Stanley Special Situations Fund.

The investment profile of the fund is to target "smart-growth"development and redevelopment in the Washington, DC area, Victor B.MacFarlane, managing principal, chairman and CEO of MacFarlanePartners, says. "Our investment will further the development ofhigh-density, commercial and residential space around transit hubs,which we believe will encourage residents to use the Metro systemas a primary means of transportation," he says in a statement. It'sthe largest investment to date made by the company, he adds.