JBG Urban JV Targets $10B in Development

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WASHINGTON, DC-San Francisco-based MacFarlane Partners and local developer JBG Cos. are partnering for the first time to develop an ambitious office, retail, hotel and multifamily portfolio of 93 developments at 43 sites throughout the Greater DC area. The duo says these assets, which JBG contributed to the venture, will be valued at $10 billion once the development and extensive renovations planned are complete. The joint venture, called JBG Urban, will be seeded with $2.6 billion from a variety of sources including investment entities managed by MacFarlane Partners, investors in JBG Investor Funds I through V, JBG’s principals, and the 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 MacFarlane Partners, says. “Our investment will further the development of high-density, commercial and residential space around transit hubs, which we believe will encourage residents to use the Metro system as a primary means of transportation,” he says in a statement. It’s the largest investment to date made by the company, he adds.