JBG Smith Recasts $1B Revolver

National Landing. Rendering courtesy of JBG Smith

JBG Smith, a prominent metro Washington, D.C., owner and developer, has amended and extended its existing revolving credit facility, which was set to mature on July 16, 2021. The recast $1.0 billion revolving credit facility extends the maturity date for five years, to Jan. 7, 2025. The amendment also lowers the current interest rate to LIBOR plus 105 basis points, a reduction of 5 basis points from the prior revolving credit facility.

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The recast was led by Wells Fargo Securities LLC, BofA Securities Inc., JPMorgan Chase Bank N.A., Capital One N.A., PNC Capital Markets LLC and Citizens Bank N.A., acting as joint lead arrangers, with Wells Fargo Bank N.A. serving as administrative agent. BMO Harris Bank N.A., Regions Bank, TD Bank N.A., The Bank of New York Mellon, Truist Bank, Goldman Sachs Bank USA, The Bank of Nova Scotia and Morgan Stanley Senior Funding Inc. served as documentation agents. (Truist is the scion of the $28 billion merger last year between SunTrust and BB&T).

In addition to the joint lead arrangers and documentation agents (or affiliates thereof), Fifth Third Bank, Landesbank Baden-Württemberg (New York Branch), ING Capital LLC, Crédit Agricole Corporate and Investment Bank, Associated Bank, United Bank, and U.S. Bank N.A. are parties to the revolving credit facility as lenders. The transaction leaves unchanged Smith’s two $200 million unsecured term loans, which will mature in January 2023 and July 2024, respectively.

HQ2 and much more

The National Landing mixed-use development in Arlington and Alexandria, Va., has been occupying much of JBG Smith’s attention. It’s there that the Bethesda, Md.–based REIT will be the exclusive developer of Amazon’s vaunted HQ2, which in March 2019 received its final go-aheads from Arlington County and the Virginia General Assembly. The headquarters complex, comprising both new and existing buildings, will eventually be valued at about $2.5 billion. A lease announced last April for Smith’s 1988 building at 2345 Crystal brought Amazon’s total of leased and preleased space at National Landing to about 537,000 square feet.

But there’s more to JBG Smith and National Landing than just Amazon. A year ago, PBS took a 15-year lease for 120,000 square feet at Smith’s 1225 S. Clark St. And earlier this month, Hana, CBRE’s coworking division, agreed to lease 39,000 square feet at Smith’s 2451 Crystal Drive, an 11-story 1989-vintage building that Smith recently renovated.

Other players, too, are active in National Landing. In May 2019, Starwood Capital Group acquired from Beacon Capital Partners the 349,300-square-foot office building at 2511 Jefferson Davis Highway. The price was reportedly around $100 million.