JBG Smith (JBGS) announces $580 million joint venture with Fortress.

JBG Smith (JBGS) announced today that it has entered into an agreement to form a joint venture with Fortress Investment Group to recapitalize a portfolio of seven office properties owned by JBGS valued at $580 million.  The transaction is expected to close in the first half of 2022.

“In 2021, we announced plans to sell at least $1.5 billion of non-core office and land assets, primarily outside National Landing, to deleverage our balance sheet and provide capacity for multifamily development and acquisition opportunities and share repurchases,” said George Xanders, JBG SMITH Chief Investment Officer. “This partnership with Fortress, a top-tier investment management firm, accelerates our capital recycling initiatives and advances our planned portfolio shift to majority multifamily, with an office concentration in National Landing.”