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Developer JBG Smith says it has submitted new plans for a major redevelopment of its RiverHouse apartment property in Pentagon City, four blocks from Amazon’s new HQ2.
The developer announced today (Monday) that it submitted a site plan application to Arlington County to build about 1,000 new housing units along S. Joyce Street. The units will be in two, six-story apartment buildings, as well as traditional townhouses and maisonettes, per the press release, and about 260 of the units will be available for purchase.
The six-story buildings will have mix of units, including studios and three-bedroom units, for a combined total of 750 units. These two buildings will be constructed on the parkings lots in the northern end of the site and will feature central courtyards, and 30,000 square feet of “community-oriented street-level retail, including a potential daycare center and medical office, at the base of the two new buildings.”
The townhouses will be built on “underutilized” surface parking lots in the southern end of the site, facing the Aurora Highlands neighborhood and its single-family homes, JBG said
The extensive, 36-acre RiverHouse property is on a long lot bordered by Army Navy Drive, S. Joyce Street, 16th Street S., S. Arlington Ridge Road, and S. Lynn Street, at the edge of what’s being called “National Landing” — the recently-created term for the Pentagon City, Crystal City and Potomac Yard neighborhoods.
Currently, RiverHouse has three apartment towers built in the 1950s and 1960s, with a combined 1,670 apartment units. JBG Smith intends to keep the three towers, per the press release, and will instead construct the new buildings around the existing towers.
JBG Smith Executive Vice President Andy Van Horn said in a statement that the developer aimed to design a plan that “respects and complements the scale and character of the surrounding neighborhoods while creating a more cohesive sense of community.”
“We also focused on providing a wide range of rental and for-sale housing opportunities that meet the differing needs of Arlington’s diverse and growing residential population,” he said. “It is our goal to deliver additional housing units concurrent with Amazon’s occupancy of its new headquarters to help meet anticipated new housing demand and mitigate upward pressure on rents in National Landing.”
Vornado — which was later acquired by JBG Smith — had planned to redevelop RiverHouse with more than 1,000 rental apartments in three, mid-rise towers. The new submission, which JBG Smith says is “consistent with the Crystal City/Pentagon City Sector Plan which calls for 7,500 additional housing units by 2040,” supersedes the previous, pre-HQ2 plan.
A virtual tour is now online of the room developer JBG Smith used to pitch Crystal City and Pentagon City properties to Amazon.
Shirlington-based real estate marketing firm Lyons & Sucher designed the space, calling it “the room where it happened” and posted a virtual 360-degree tour on their website earlier this week.
“Typically people in a brokerage situation might hand you a powerpoint or a book or something. But this was super life size,” Jane Lyons of Lyons & Sucher told ARLnow. “And it created a very quick impression of how much we wanted the Amazon account and what we could do in a very short time and also how it could be kept up.”
Lyons said Amazon executives visited the room three times over the course of 2018, and before each visit JBG Smith directed her marketing firm to update the room to reflect the latest negotiations.
The third and final version of the room is the one shown on the firm’s website. It starts with a “Welcome to National Landing” mat and leads viewers around a series of freestanding, 10-foot-high walls with information about:
- The history of Crystal City
- Profiles of Northern Virginia and D.C. neighborhoods
- Information on the D.C. area’s millennial workforce and comparisons to other cities
- Connections to public transit and airports
- Renderings of properties Amazon was considering leasing or buying
The space also features a 120-foot-long floor map of Crystal City that designers marked up to show different features depending on what JBG Smith wanted to highlight.
“It was fabricated to allow it to be updated,” said Lyons. “It was a huge print job.”
One of the other changes to the room was that the marketing firm was asked to switch out the individual building renderings along the main 64-foot wall with a 64-foot aerial image of Crystal City and its connections to Alexandria, the Potomac, and D.C.
“That one stayed up for the third visit,” she noted.
Lyons said she was not able to share the all details of the changes her firm made to the room or any still pictures, due to a non-disclosure agreement.
However, the space shown on the website offers some clues as to what Amazon found important. The floor map, for instance, notes the location of Metro stations, walking distances between certain buildings, a place for outdoor dining, and the site of a potential school.
A spokesman for JBG Smith declined to comment for the story.
Earlier this month, the developer inked its deal with Amazon to lease three office buildings in Crystal City — 241 18th Street S., 1800 S. Bell Street, and 1770 Crystal Drive — and to sell a pair of large Pentagon City development sites to the company.
In March, the County Board cleared the way for Amazon to begin developing its second headquarters in earnest by unanimously approving a controversial package granting $23 million in incentives to the company if it meets certain hiring and occupancy benchmarks.
The Virginia General Assembly approved a $750 million state incentive package for the company this winter.
Arlington also pledged to fund $28 million in transportation upgrades near the planned headquarters, and to forward public records requests concerning Amazon to the company.
An Amazon spokesperson did not respond to requests for comment.
Lyons’ firm was asked to replace an aerial image showing connections to transit networks with a video showing building renderings along Crystal Drive; otherwise, the presentation to one of the world’s biggest technology companies was an analog one.
“When you are working to impress somebody who has the best tech ever they’re not going to be impressed by tech,” Lyons said, adding that that being able to physically interact with the space was “part of the magic.”
As for the room itself?
“It’s gone now,” said Lyons, explaining that the building is now being renovated. “It doesn’t exist anymore.”
Screenshots via Lyons & Sucher’s website
(Updated at 9:30 a.m.) JBG Smith has made it official with Amazon, announcing this morning the signing of lease and development agreements with the tech and retail giant.
Construction has already started on Amazon’s three temporary leased office buildings in Crystal City, with the company expecting to move into two of the buildings — 241 18th Street S. and 1800 S. Bell Street — later this year.
Amazon is also buying a pair of large development sites in Pentagon City from JBG Smith — sites that JBG will help develop into a permanent second headquarters campus for the company. The sale price of the vacant Metropolitan Park and PenPlace properties, each two blocks from the Pentagon City Metro station: just under $300 million.
“We are pleased to report that our partnership with Amazon at National Landing is moving full steam ahead,” JBG SMITH CEO Matt Kelly said in a press release, below. “With the execution of these agreements and recently legislated state and local government commitments to invest approximately $2 billion in the region’s transportation, education and housing infrastructure, we are ready to welcome Amazon’s first National Landing employees in the coming months.”
More from the press release:
JBG SMITH (NYSE: JBGS), a leading owner and developer of high-quality, mixed-use properties in the Washington, DC market, today announced that it has executed three leases and two Purchase and Sale Agreements with affiliates of Amazon.com, Inc. in conjunction with the creation of Amazon’s HQ2 at National Landing in Northern Virginia.
These agreements are the result of Amazon’s announcement in November 2018 that it had selected JBG SMITH as its partner to house and develop its HQ2 locations after a comprehensive, year-long search that included proposals from 238 cities across North America.
Amazon has executed three initial leases totaling 537,000 square feet at three existing JBG SMITH office buildings in National Landing. The leases encompass 88,000 square feet at 241 18th Street South, 191,000 square feet at 1800 South Bell Street, and 258,000 square feet at 1770 Crystal Drive. JBG SMITH expects Amazon to begin moving into 241 18th Street South and 1800 South Bell in 2019, and 1770 Crystal Drive by the end of 2020.
JBG SMITH and Amazon have also executed Purchase and Sale Agreements for two of JBG SMITH’s National Landing development sites, Pen Place and Met 6, 7, and 8, which will serve as the initial phase of new construction associated with Amazon’s HQ2. Subject to customary closing conditions, Amazon will pay $294 million for the sites, or $72 per square foot based on their combined development potential of 4.1 million square feet. JBG SMITH, which has flexibility on the timing of closing to facilitate 1031 exchange opportunities, expects to close on the Mets land sales as early as 2019 and on Pen Place as early as 2020. JBG SMITH will also serve as Amazon’s developer, property manager, and retail leasing agent for these assets.
“We are pleased to report that our partnership with Amazon at National Landing is moving full steam ahead,” said JBG SMITH CEO, Matt Kelly. “With the execution of these agreements and recently legislated state and local government commitments to invest approximately $2 billion in the region’s transportation, education and housing infrastructure, we are ready to welcome Amazon’s first National Landing employees in the coming months.”
In January 2019, the Virginia General Assembly overwhelmingly approved incentive legislation associated with HQ2 to fund $195 million toward critical infrastructure improvements, including second entrances to the Crystal City and to-be-constructed Potomac Yard Metro stations, a pedestrian connection linking National Landing to Reagan National Airport, an expanded VRE station and substantial improvements to Route 1. These investments are in addition to $570 million of regional government commitments for transportation infrastructure and transit improvements, and they follow the regional compact from mid-2018 to invest $500 million annually in Metro system improvements.
In March 2019, the Arlington County Board also unanimously approved a $23 million performance agreement with Amazon. Both packages provide post-performance incentives for Amazon to create up to 37,850 jobs with an average annual salary of $150,000 and occupy at least six million square feet of office space in Arlington County.
The General Assembly also recently approved a major education investment package that includes funding of $250 million toward Virginia Tech’s planned $1 billion Innovation Campus to be located in National Landing and $125 million planned for new Master’s degree programs in computer science and related fields at George Mason’s Arlington campus.
In addition, the County of Arlington, the City of Alexandria and the Commonwealth of Virginia have collectively dedicated $225 million to fund a range of low-income and workforce housing initiatives over the next decade.
JBG Smith is gearing up to invest hundreds of millions of dollars in Crystal City, Pentagon City and Potomac Yard, arguing that Amazon’s impending arrival could make the “National Landing” area nearly as in-demand as D.C. itself.
In documents delivered to investors last week, the developer revealed its most detailed plans yet for how it expects to work with the tech giant as it moves its 25,000 workers to the county.
Perhaps most notably, JBG revealed for the first time that Amazon will fork over $294 million to buy the company’s “PenPlace” and Metropolitan Park properties in Pentagon City, where it will eventually build new offices. As work on those buildings continue, the company will sign “short-to-medium term” leases at JBG’s buildings at 241 18th Street S. and 1800 S. Bell Street in Crystal City, where JBG is also planning to spend another $15 million to spruce up the properties.
JBG also told its shareholders that Amazon will lease the entirety of a new building planned for 1770 Crystal Drive, which sits at the heart of the developer’s just-approved “Central District” redevelopment project for the entire block. The company expects to spend $80 million redeveloping the building, with the eventual goal of opening it in time for 2020 and making it a more permanent home for Amazon employees.
But those changes represent only the work the developer is planning that’s tied directly to Amazon. By its own estimate, JBG already owns about 71 percent of office buildings in the neighborhood, and it hopes “redeploy the proceeds” of its Amazon windfall “into either new development or income-producing multifamily assets.”
Per the documents, potential projects could include the redevelopment of 1800 S. Bell Street property once Amazon leaves, or the overhaul of some of its other existing Crystal City and Pentagon City properties; 2001 Jefferson Davis Highway, 223 23rd Street S., 101 12th Street S., and the RiverHouse Apartments (1400 S. Joyce Street) are all listed as possibilities.
Essentially, the company is betting that Amazon’s arrival will be a “powerful economic catalyst” and “kick-start the development of a technology ecosystem that has long searched for its footing in the D.C.,” CEO Matt Kelly wrote to shareholders.
“As vacancy in National Landing burns off and technology job growth gains momentum, we expect National Landing to [surpass] Rosslyn as the most valuable Northern Virginia submarket, and approach convergence with Washington, D.C.,” Kelly wrote in a letter to investors.
Those forecasts represent quite the radical change from Crystal City’s previous woes attracting any companies to the area. The departure of federal and military tenants left the neighborhood with a persistently high vacancy rate, shrinking a key tax revenue stream for the county, but officials have long touted Amazon’s impending arrival as a way to solve that problem virtually overnight.
JBG is so bullish on the impending demand in the area that it could very well convert one of its planned apartment redevelopments into more office space instead.
The developer recently began demolition work on a building at 1900 Crystal Drive, space it eventually hoped to transform into two apartment towers with a total of 750 homes between them. JBG plans to start construction by “early 2020,” but notes for investors that “this project could switch to office in the event of a substantial or full building pre-lease.”
The company plans to eventually spend $550 million on that construction and work its other Amazon-related properties, though it expects it will have little trouble affording such expense. Kelly noted in his letter that JBG saw increased demand in the area even before Amazon made its Arlington move official, and has been able to raise rents and property asking prices accordingly.
“We have also seen a dramatic increase in demand from retailers looking to locate in our initial phases of placemaking development,” Kelly wrote. “Since the announcement, we have had a further wave of increased inquiries. We believe that this increase in demand for our holdings in National Landing will continue, and likely amplify, as Amazon grows in the submarket.”
(Updated at 1 p.m.) Amazon’s arrival in Crystal City and Pentagon City seems set to completely transform developments already planned for the area.
The company’s big announcement today (Tuesday) that it would split its planned second headquarters between Arlington and New York City represents a major windfall for JBG Smith, the largest property owner across the newly dubbed “National Landing” — an area including Crystal City, Pentagon City and Potomac Yard. The developer had long sought to fill thousands of square feet of vacant office space in the neighborhoods, much of which will now presumably be occupied by Amazon’s 25,000 workers attached to the project.
But renderings posted online suggest that JBG will also tweak developments already in progress to suit the tech giant’s needs. The new “NationalLanding.com” offers a virtual tour of the area, and promises that the developer “intends to accelerate the planning, entitlement, and development of several projects” to meet Amazon’s arrival in the area — the company expects to occupy anywhere from 4 million to 8 million square feet in office space over the life of the new headquarters.
JBG Smith writes on the site that it currently controls 6.2 million square feet of existing office space in the area, with another 7.4 million of “additional development opportunities in National Landing, excluding Amazon’s proposed land purchase.” In all, the company is planning the following moves in the area, from a press release:
- Lease approximately 500,000 square feet of existing office space at 241 18th Street S., 1800 S. Bell Street, and 1770 Crystal Drive.
- Purchase Pen Place and Met 6, 7, 8 land in JBG SMITH’s Future Development Pipeline with Estimated Potential Development Density of up to 4.1 million square feet. JBG SMITH has the right to time the expected closings of the land parcel sales to facilitate 1,031 exchange opportunities.
- Engage JBG SMITH as its development partner, property manager, and retail leasing agent.
- Commence predevelopment and planning of the first office building in 2018, with construction expected to begin in 2019.
The new renderings include a “multimodal transit hub” located near the pedestrian bridge linking Crystal City to Reagan National Airport, which Amazon has volunteered to help build as part of the project. It’s unclear where exactly the hub will be located.
The renderings also center around a second entrance for the Crystal City Metro station, an amenity long sought by the county but once seemed out of reach due to funding constraints. JBG Smith is currently working on a redevelopment of the area dubbed “Central District,” and those plans included a controversial proposal to build retail space over the new Metro entrance. New sketches suggest that the developer may push ahead with those plans, now that the construction of the second entrance is assured.
“The public and private sectors are currently investing billions of dollars in the National Landing area to improve infrastructure, expand on entertainment and retail options, enhance public spaces and introduce new/repositioned buildings,” Tracy Gabriel, president and executive director of the Crystal City Business Improvement District, wrote in a statement. “We believe that Amazon will help accelerate the transformation underway in Virginia’s largest walkable downtown, further growing and diversifying Crystal City’s economy, bolstering our already strong tech presence and attracting additional companies and investment.”
Also on the way for the area is a helipad, according to the county’s memorandum of understanding with the company.
“Arlington County staff will assist Amazon in its efforts to obtain required County Board, commonwealth and federal approvals for the development, construction, and operation (at the company’s expense)” of the project, according to the memo.
Plans to transform a section of Crystal City into a new retail hub for the neighborhood could soon move ahead, though neighbors and cyclists are still pressing for changes to the redevelopment effort.
Many of JBG Smith’s plans for the “Crystal Square” project, centered on a block of Crystal Drive between 15th Street S. and 18th Street S., are up for approval by the County Board this weekend. The long-awaited project would completely revamp the existing office buildings on the block, adding a new movie theater, grocery store and other retailers to replace the existing Crystal City Shops at 1750.
County staff and planners have generally given the project a green light, given its potential to help speed along the transformation of a block centered around the area’s Metro station. Even still, some people living nearby worry that the construction will blot out some of Crystal City’s limited green space, and won’t address the neighborhood’s transportation challenges.
The heart of the Crystal Square development, backed by the area’s largest property owner, generally isn’t up for dispute. In all, JBG Smith plans to add 84,000 square feet of retail and commercial space along Crystal Drive by renovating some of the existing buildings on the property, and tacking on some additions as well.
The main draws will be a three-story movie theater, reportedly an Alamo Drafthouse location, and a 15,000-square-foot “small format specialty grocer,” like a Trader Joe’s or Whole Foods. Those businesses, and perhaps many others, will generally be centered closest to Crystal Drive’s intersection with 15th Street S., and the existing one-story retail in the area will likely be demolished to connect the theater and the grocery store, removing a small park in the process.
County staff note in a report for the Board that the proposal is “not a complete redevelopment that breaks up the existing superblock with new public streets,” as might eventually be desirable for the area, but it is a chance to “create a high-quality public realm…[that] enhances multimodal access and connectivity by placing large regional draws such as a movie theater and grocer within easy access of the Metro, bus stops, and VRE station.”
However, cycling advocates worry that all these plans will do little to improve connectivity to the Mt. Vernon Trail, leaving people highly dependent on cars in the area. The Washington Area Bicyclist Association is urging cyclists to press for protected bike lanes along both Crystal Drive and 18th Street S. to create a safer, low-stress place to bike that wouldn’t be constantly blocked by parked cars.
JBG Smith declined to comment for this article, but it seems the developer doesn’t see much room for protected bike lanes in the area. While a bike lane along Crystal Drive is included in the Crystal Square plans, county transportation staff told the Planning Commission back in February that “there is not enough space to provide a protected bike lane” on the road.
Eventually, JBG says it could also build a two-story retail building further down the block, at Crystal Drive’s intersection with 18th Street S. That feature has drawn a bit more scrutiny from neighbors, who note that the site was long envisioned as a new park to replace the green space set to be removed in the earlier construction.
“The proposed two-story building would take a chunk out of that green space and destroy the sight line from Crystal Drive up to Clark/Bell [Streets,” Crystal City Civic Association President Carol Fuller told ARLnow. “The CCCA has been fighting this for months.”
Fuller points out that the location is also the proposed place for a second Metro station entrance, but with the county putting the brakes on that project as it deals with a funding crunch, she argues it would make much more sense to delay consideration of adding a new building there as well. Otherwise, she sees it as a “poison pill” impacting the whole development proposal.
The Planning Commission ultimately voted to endorse that building back in May, though many members expressed grave concerns about the proposal. The Parks and Recreation Commission even said it was “premature” to allow the building until securing firm funding commitments from JBG to ensure a park of some kind is indeed built on the space.
Those concerns aside, the Board seems unlikely to take action on that part of the proposal, at least in the near term.
JBG is also asking for permission to revert one office building on Crystal Drive back to office space, doing away with plans to convert it into an apartment building, a move fueling speculation that the company wants to wait to see if Amazon tabs the neighborhood for its second headquarters before committing to plans for the building.
Staff recommend that the Board defer any consideration of that request, and plans for the two-story building, for up to a year, given all the uncertainty still surrounding the site.
The Board will take up consideration of the project at its meeting Saturday (Oct. 20).
Crystal City’s biggest property owner is now testing out a new pavement sealant in a bid to bring down temperatures and reduce the “heat island” effect increasingly plaguing urban areas.
JBG Smith just sealed a pair of its parking lots in Crystal City, in front of an office building at 241 18th Street S., with a new product dubbed “CoolSeal,” which is designed to bring down temperatures on the asphalt by as much as 10 degrees during even the sunniest months of summer.
The reflective pavement treatment is gaining popularity in the Southwest as a way to reduce the amount of heat bouncing off of wide swaths of pavement, though JBG officials believe this is the first time any company has tested out this particular asphalt coating on the East Coast. The company plans to study the impact of the treatment on the roughly 18,000 square feet of pavement over the next year or so, and could someday starting using at its bevy of properties across the D.C. region.
“One of the benefits of being a larger property owner with a diverse portfolio is the ability to try new things,” Brian Coulter, JBG Smith’s chief development officer, told ARLnow. “We think a lot about, ‘How do we improve the built environment and the experience of people on the ground?’ And this could really make a difference in that respect.”
Coulter says he’d never heard of CoolSeal until reading about it in a landscaping magazine a few weeks back, and the product instantly struck him as a good fit for his company.
Researchers have increasingly found that D.C. has some of the most intense urban heat islands in the country, with the high concentrations of parking lots and buildings driving up temperatures in more developed neighborhoods when summer rolls around. Coulter says he never saw the heat in Crystal City as especially problematic, but because the company owns so much property in the neighborhood, he felt it was a natural spot to test out CoolSeal on as large a space as possible.
“It’s a big enough area where you’re not just dealing with a couple parking spaces,” Coulter said. “It just felt like a continuation of some of the other experiments and interventions we’ve done there before, particularly around public art.”
JBG ended up using about 550 gallons of the coating, with workers applying it to the parking lots over the course of the first two weekends in October. The company estimates the effort cost about $50,000, in all.
Yet Coulter believes the experiment could end up being well worth the expense if it works as intended. He says the company plans to measure the sealant’s impact on the temperature on the parking lots, and the surrounding area, through the end of next summer to see how it works in practice.
Should it have a notable impact, Coulter expects JBG could use CoolSeal all throughout its properties in both Crystal City and Pentagon City, as part of the developer’s continuing efforts to link the neighborhoods together. The company has all manner of new projects underway in Crystal City, fueling Amazon HQ2 speculation with its dominance in the area, and is also backing the major PenPlace development in Pentagon City.
“We see those two areas as part of the broader neighborhood, and one way to better establish that is with the pedestrian experience,” Coulter said. “If this is done well, it will work well for the people who visit and the people who live there.”
He doesn’t think CoolSeal needs to be limited to just parking lots, either. He envisions everywhere from basketball courts to bike trails to the roofs of tall buildings being ripe for the heat-reducing treatment, and that goes for all of JBG’s properties around the D.C. area.
“We’re really excited about the possibility and potential of this,” Coulter said. “Because, clearly, if this has the type of impact we’re looking for, it really does fit in nicely with everything we’re trying to do.”
Despite continued high office vacancy rates, developer JBG Smith has abruptly reversed course on a plan to convert an aging Crystal City office building to apartments.
At an Arlington County Site Plan Review Committee meeting on Monday, the company presented an updated plan to renovate the 12-floor, 242,000 square foot building at 1750 Crystal Drive and modernize the building facade. The change comes less than a year after JBG Smith filed a plan to convert the office building into a 21-story residential tower, which in turn was a change in course from an approved circa-2015 plan to modernize the building and keep it as office space.
The new-new plan changes the building’s address to 1770 Crystal Drive and better integrates it into planned pedestrian improvements and the “Central District” retail cluster, which is to include an Alamo Drafthouse Cinema, restaurants with outdoor seating and a possible small-format grocery store.
The flip back to office will undoubtedly pique the interest of those trying to read the Amazon HQ2 tea leaves.
Betting markets and industry observers think the D.C. area is the most likely destination for the company’s second headquarters, and sources tell ARLnow.com that Crystal City is by far the most likely D.C. area location for it. Meanwhile, office vacancy in Crystal City remains high — it was just below 20 percent as of a year ago, according to county data — and the neighborhood’s largest and most influential landowner has scrapped an ambitious residential conversion plan in favor of sprucing up currently-vacant office space.
Amazon CEO Jeff Bezos said last week that an HQ2 decision will be announced by the end of the year. The company’s request for proposals specifies that HQ2 will require a large amount of office space — 500,000+ square feet — in a relatively short period of time after the announcement.
A spokesman for JBG Smith was not immediately available to comment, according to a PR rep for the company.
(Updated at 8:30 p.m.) An older office building in Crystal City may be converted into apartments, and developer JBG Smith is soliciting public feedback on the project.
JBG Smith is looking to convert a 12-story office building at 1750 Crystal Drive into a 21-story residential building. The building, across from the Crystal City Water Park, would be 257 feet in height.
In the first phase of the “Central District” project, a new 74,000 square foot, street facing retail area would be built, reportedly anchored by an Alamo Drafthouse Cinema. The retail area may also include a smaller-format grocery store, like a Trader Joe’s.
A JBG Smith presentation says the project would include “delivery of nine screen Alamo Drafthouse Theater that shows first run and art house films as well as dining, entertainment, and event space hosting.” According to the feedback website, JBG is hoping to start construction in the fall and to have the theater open by the spring of 2020.
As part of the project, a two story, 16,000 square foot retail building would be built at the corner of 18th Street S. and Crystal Drive — next to a proposed second Crystal City Metro entrance — with renderings showing an sizable outdoor dining area adjacent to it.
Feedback from JBG’s online portal is helping to shape the development, said a representative for the company that created the portal.
“It’s a new approach for the developer, which added online outreach to the traditional process involving community meetings,” said the rep. “Over 1,600 people have interacted with the Central District at Crystal City website… Based on the feedback, JBG Smith has committed to providing seating, plantings, and seasonal events in the plaza.”
“The developer is also recruiting a full-service grocery store, which online voters said was the most important element to make the spot a neighborhood destination,” he added.
(Updated at 9:45 p.m.) Two warehouses along S. Eads Street in Pentagon City are being razed to eventually make way for a redevelopment project.
JBG Smith is expected to begin demolition of the warehouses at some point in April or May 2018. The project is scheduled to take six to eight weeks.
At this point, it’s unclear what will replace the buildings, located between 12th and 15th streets. The company is backing away from plans approved by the county in July 2016 to build a 22-story, 577-unit residential tower.
JBG Smith has “no plans at the moment” to build the county-approved project due to uncertain market conditions, said a PR representative for the company.
“It’s unknown and sort of depending on where things go in the market,” the rep said.
On Friday (February 1), the company hosted a community meeting to discuss the demolition project. Several people attended and voiced concerns about noise generated from demolition, we’re told.
Demolition crews will work from 7 a.m. to 9 p.m. on weekdays and from 9 a.m. to 9 p.m. on weekends and holidays, according to meeting materials. Construction traffic will enter the site through S. Eads Street. The exit point is either north on S. Eads to Army Drive or south on S. Eads Street to 15th Street.
Photos by Fatimah Waseem
Vornado, Arlington County’s biggest private landowner — with major collections of properties in Crystal City and Rosslyn — announced today that it is spinning off and merging its D.C. area operations with Chevy Chase, Md.-based JBG Companies.
The combined company would have both office and residential properties throughout Crystal City, Pentagon City and the Rosslyn-Ballston corridor. Among JBG’s properties in Arlington are the under-construction Central Place project in Rosslyn and the iconic “Bob Peck” office building at 800 N. Glebe Road in Ballston.
In 2014, Vornado’s properties in Arlington were assessed at $3.8 billion, or 5.7 percent of the total assessed value of all property in the county, according to the Washington Business Journal. JBG’s properties in Arlington were assessed at $1.31 billion.
From a press release, issued late this afternoon:
VORNADO REALTY TRUST (NYSE:VNO) (“Vornado”) announced today that its Board of Trustees has approved a tax-free spin-off of its Washington, DC business, currently known as Vornado/Charles E. Smith, and that it has entered into a definitive agreement to merge SpinCo with the operating company and certain select assets of The JBG Companies (“JBG”), a leading Washington, DC real estate company.
The combined company will be named JBG SMITH Properties. It will be the largest, market-leading, best-in-class, pure-play Washington, DC real estate company. This transaction represents a key milestone in Vornado’s value creation strategy which will have produced three world-class, highly focused REITs – Vornado itself (RemainCo), Urban Edge Properties, and now, JBG SMITH. Each of these companies has a highly focused
management team, unique assets, and a clearly defined mission.
About JBG SMITH
- Vornado shareholders are expected to own approximately 74% of the combined company, JBG limited partners are expected to own approximately 20%, and JBG management is expected to own approximately 6% (all percentages subject to closing adjustments).
- JBG SMITH will be led by JBG’s senior management team which has a proven track record of superior execution in the Washington, DC market over the long term and through numerous cycles.
- The combined company’s portfolio will consist of 50 office properties totaling approximately 11.8 million square feet, 18 multifamily properties with 4,451 residential units, and 11 other properties totaling approximately 0.7 million square feet. These assets are located in premier submarkets within the Washington, DC metropolitan area, concentrated in Downtown District of Columbia, Crystal City and Pentagon City, the Rosslyn-Ballston Corridor, Reston, and Bethesda.
- Importantly, JBG SMITH will have a pipeline of projects under construction and land for future development that could add over 20 million square feet to the portfolio, positioning the company for strong growth and attractive shareholder returns.
- JBG SMITH will be the largest landlord to the U.S. Government in the nation’s capital.
- The Company will be well capitalized, have substantial liquidity and a strong balance sheet.
- The combination is expected to result in approximately $35 million of synergies producing an overhead structure in line with best-in-class peers.
- The new company will continue to manage the JBG funds’ assets that are not being contributed for customary fees. The company will not raise new investment funds. JBG SMITH Board and Management
- JBG SMITH’s Board of Trustees will consist of twelve members, a majority of whom will be independent. Vornado and JBG will each designate six trustees.
- Steven Roth, Vornado’s Chairman and Chief Executive Officer, will be Chairman of the Board.
- W. Matt Kelly, a Managing Partner of JBG, will be Chief Executive Officer of JBG SMITH and a member of the Board.
- Rob Stewart, a Managing Partner of JBG, will be Executive Vice Chairman of the Board.
- The Board will also include seven independent trustees including Alan Forman of the Yale University Investments Office, JBG’s largest investor.
- Michael Glosserman, a Managing Partner of JBG, will also join the Board, as will Mitchell Schear, current President of Vornado/Charles E. Smith.
- From JBG, David Paul will be President and Chief Operating Officer, James Iker will be Chief Investment Officer, and Brian Coulter and Kai Reynolds will be Co-Chief Development Officers.
- From Vornado/Charles E. Smith, Mitchell Schear will be a member of the Executive Committee, Patrick Tyrrell will be Chief Administrative Officer, Jim Creedon will be Executive Vice President responsible for Office Leasing, and Laurie Kramer will be Executive Vice President focused on integration of the teams.
- The new company will look outside for a Chief Financial Officer and intends to have that individual in place before the close of the transaction.
- The new company will integrate the best talent from each of Vornado/Charles E. Smith and JBG.
- Vornado will provide transition services to JBG SMITH, in areas such as IT, tax and SEC reporting for an interim period.