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JBG Smith Looks To Sell 10 Million Shares To Help Fund Development

JBG Smith CEO Matt Kelly speaking at Bisnow's Amazon HQ2-Apalooza in February 2019.

The developer working with Amazon on its second headquarters is releasing a public offering of 10 million shares. 

JBG Smith announced Monday it would offer the shares at a price of $42/share, estimating that it could raise over $410M. 

The offering also gives an option to purchase an additional 1.5 million shares, bringing the potential proceeds to $472M. JBG Smith said the shares are expected to be delivered on or around Thursday. Morgan Stanley BofA Merrill Lynch and Goldman Sachs are jointly managing the offering.

The REIT went public in July 2017 with the merger of The JBG Cos. and Vornado's D.C. arm, a spinoff transaction, rather than a traditional initial public offering. JBG Smith plans to use the proceeds to fund development opportunities and general corporate purposes, including paying down debt. 

JBG Smith's development opportunities center around National Landing, the newly branded Arlington neighborhood where it landed Amazon HQ2 in November. It owns 15 future development assets in National Landing with 11M SF of potential density, including nearly 8M SF of office, 3M SF of multifamily and 150K SF of retail, according to an investor filing. The developer also has projects under construction or planned in Reston, Bethesda, Shaw and Northeast D.C.