BETHESDA, MD – Developer and owner, JBG Smith and affiliates of Fortress Investment Group LLC have agreed to form joint-venture to recapitalize a 1.6 million-square-foot office portfolio, valued at $580 million.

The portfolio, owned by JBG Smith, is comprised of seven office buildings located throughout the Washington D.C. region.

The portfolio includes 7200 Wisconsin Ave. in Bethesda, MD; 1730 M St. in Washington D.C.; RTC West I, II and III in Reston, VA; and Courthouse Plaza I and II in Arlington, VA.

Recommended For You

"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," says George Xanders, chief investment officer at JBG Smith.

Xanders adds, "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."

"We are honored to partner with JBG Smith to accelerate the firm's strategic transition and cement its position as a leading owner and developer of sustainable, amenity-rich, mixed-use properties in the D.C. market," states Apostolos Peristeris, Fortress managing director. "With JBG Smith's deep expertise and the strong competitive position of these office buildings, we see significant opportunity for profitable growth across this portfolio in the years ahead."

The transaction is expected to close in the first half of 2022, subject to financing and customary closing conditions. Eastdil Secured served as the exclusive advisor to JBG Smith in the transaction.

NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Ingrid Tunberg

Ingrid Tunberg sits on the editorial team as a coordinator and reporter for Real Estate Forum and GlobeSt.com. She is responsible for writing stories, assisting with industry awards and marketing nomination events. Previously, Ingrid worked as a copywriter across various industries throughout New York City and Chicago.