Developer To Recap 7M-SF Core Office Portfolio

CHEVY CHASE, MD-The JBG Cos. has decided to recapitalize a majority stake in its core class A office portfolio, which accounts for approximately 7.1 million sf of class A office space in Washington, DC, Suburban Maryland, and Northern Virginia. JBG will maintain a minority equity stake in the portfolio–which is owned by a joint venture involving Rockwood Capital, CIM Group, Prudential Real Estate Investors, Blackstone Group, JP Morgan, Trizec Properties, Steuart Investment Co. and JER Partners–and will continue to perform management and leasing activities at the properties.

Secured Capital LLC is marketing the portfolio. A JBG spokesman tells GlobeSt.com, it has a preliminary estimated recapitalization value of $1 to $3 billion. The company’s primary reason for putting much of its ownership of the portfolio on the market is to capitalize on favorable market conditions.