JBG Smith Completes $385M in Freddie Mac Financing
The firm closed on the 10-year financing, comprising separate, floating-rate loans on three multifamily assets.
BETHESDA, MD – Owner and developer, JBG Smith has completed $385 million in Freddie Mac financing, encompassing separate loans on three multifamily assets.
For this transaction, Wells Fargo Multifamily Capital served as the Freddie Mac Optigo lender.
Each of the 10-year, floating-rate loans have a five-year, interest-only period, at a blended rate of LIBOR + 251 basis points. The loans are not cross-collateralized or cross-defaulted.
The collateral of multifamily assets include The Bartlett and 220 20th St, both located Virginia’s National Landing submarket, and both of which were acquired by JBG Smith as part of the 2017 merger transaction. The collateral additionally includes 1221 Van Street in Washington DC’s Ballpark submarket, which JBG Smith developed in 2018.
Each of the multifamily assets are currently managed by JBG SMITH.
“This portfolio financing marks another major milestone for JBG SMITH and is consistent with our strategy to primarily finance our business with non-recourse, asset-level financing,” said Moina Banerjee, JBG Smith’s EVP and head of capital markets. “With the execution of this deal, we were able to source attractively priced capital for these high-quality assets despite the current economic environment, validating our strategy to preserve borrowing capacity on multifamily assets during market downturns.”