)
JBG Smith plans to tear down one of the three Tysons office buildings it bought last year and replace it with apartment units and retail in a bid to further the county’s vision for a more urban, mixed-use setting.
The D.C.-area real estate giant filed a proposal with Fairfax County to demolish the six-story building at Tysons Dulles Plaza. In its place, the REIT proposes to construct a 375-unit apartment building and two new retail buildings that will total up to 16K SF.
The proposal seeks to create a more “active, pedestrian-oriented environment” to better align with the growing “mixed-use character” of Tysons while continuing to support existing office space, according to a statement dated Friday and filed with the application.
JBG declined to comment on the proposal, which the Washington Business Journal first reported.
Under the proposal, office tenants would be relocated into the remaining two buildings. JBG said in its application that this approach would “preserve employment uses” while reinvesting in a mixed-use setting. The plan also includes adding a range of amenities such as open spaces, urban parks and a central plaza to serve residents, employees and visitors.
The property at 1410-1430 Spring Hill Road is near the Spring Hill Metro station, the westernmost of Tysons’ four Silver Line stops. Developer Comstock Cos. has planned an 8M SF mixed-use development near the station and had been in talks with a casino operator to anchor it, but the governor last month vetoed a bill that would have allowed a casino in the county.
The proposal is the latest move in JBG’s broader plan to acquire distressed office complexes and create renewed value for investors and tenants. The REIT bought the three-building, 1980s-era office park in Tysons last May for $42.3M. In December, the firm purchased another distressed office property near Dulles International Airport after a foreclosure.
JBG CEO Matt Kelly told shareholders last year that the company has pivoted its capital to office acquisitions so it can apply its mixed-use expertise and “unlock long-term value.” The REIT is scheduled to report its first-quarter earnings on Tuesday.
)
)
)
)
)
)
)
)
)
)
)
)