Dealmaker: JBG Smith Closes on $385M Freddie Mac Loan

JBG Smith, Bethesda, Md., closed on $385 million in Freddie Mac 10-year financing secured by three Washington, D.C.-area multifamily assets.  

Wells Fargo Multifamily Capital, McLean, Va., served as Freddie Mac Optigo lender for this transaction.

The floating-rate loans all included five years of interest-only payments at a blended rate of LIBOR + 251 basis points. The loans are not cross-collateralized or cross-defaulted.

The collateral included The Bartlett and 220 20th Street, both located in Arlington, Va.’s National Landing submarket, and 1221 Van Street in Washington’s Ballpark submarket. JBG Smith developed 1221 Van Street in southeast Washington in 2018. It acquired The Bartlett and 220 20th Street as part of a 2017 merger transaction. JBG Smith currently manages all three assets.

JBG Smith Executive Vice President and Head of Capital Markets Moina Banerjee called the portfolio financing consistent with the firm’s strategy to primarily finance its business with non-recourse, asset-level financing. “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,” she said.

JBG Smith’s portfolio currently includes 20.8 million square feet of Washington-area office, multifamily and retail assets, 98 percent of which are served by the Washington Metro public transportation system.