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JBG Smith Closes $385M Refinancing Of 3 D.C.-Area Apartment Buildings

The Bartlett, JBG Smith's Whole Foods-anchored apartment building at 520 12th St. South in Pentagon City.
The Bartlett, JBG Smith's apartment building at 520 12th St. South in Pentagon City.

JBG Smith has secured a $385M refinancing deal on three loans backed by apartment buildings near Amazon HQ2 and Nationals Park.

The Bethesda-based REIT announced Thursday it completed a financing deal with Freddie Mac and Wells Fargo Multifamily Capital. The $385M deal consisted of three loans, backed by The Bartlett and 220 20th St. in National Landing, and the 1221 Van building in Capitol Riverfront

The floating-rate loans have 10-year terms and a five-year interest-only period, with a blended rate of 250 basis points higher than the Libor benchmark.

JBG Smith in 2018 delivered 1221 Van, a 291-unit apartment building with ground-floor retail. It sits across the street from the ballpark where the 2019 World Series champions will play their long-awaited season opener Thursday evening. It is also one block from the West Half building JBG Smith delivered last year, and two blocks from the F1RST building it acquired in November. 

The REIT inherited the two National Landing buildings from the Vornado/Charles E. Smith portfolio with which it merged in 2017. Vornado delivered The Bartlett, a 699-unit, Whole Foods-anchored building in Pentagon City in 2016. It built the 19-story, 265-unit building at 220 20th St. South in 2009.

"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," JBG Smith Executive Vice President and Head of Capital Markets Moina Banerjee said in a release. "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."