WASHINGTON, DC–The Canada Pension Plan Investment Board has acquired a 45% stake in JBG SMITH's trophy building under development in the CBD: the 271,000-square foot 1900 N St., NW. CPPIB is acquiring its stake for $101 million, based on a capitalization of $225 million. JBG SMITH will continue to manage and lease the asset.
The property was 29.6% preleased as of the third quarter of 2017. Last summer Goodwin Procter announced it would be the anchor tenant at the trophy office, taking 80,329 square feet.
The investment by CPPIB represents “continued interest from institutional investments in high-quality assets in the Washington DC market…” JBG SMITH CEO Matt Kelly said in a prepared statement.
Hilary Spann, managing director, Head of Americas, Real Estate Investments, CPPIB, elaborated on this theme in her statement, noting that the investment fits well with its US office strategy. “The investment in 1900 N Street broadens our Washington, DC, portfolio, and we expect it to deliver attractive risk-adjusted returns over the long term.”
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
