JBG Smith, the company behind RTC West near the future Reston Town Center Metro Station, is looking to let go of one of its office properties in Reston.
Bisnow reports that the company is seeking to sell Reston Arboretum, a 95,000-square-foot building located at 12700 Sunrise Valley Drive.
Thus far, the owner of the property renovated the building, including upgrades to the lobby and fitness center and the addition of an outdoor park area, food market and bike storage room.
Here’s more from Bisnow on the possible sale:
“The Reston Arboretum property is a compelling investment opportunity based on its boutique characteristics, its suburban location and proximity to both the Herndon Metrorail Station and the 15-acre Herndon Nature Preserve,” Colliers Executive Vice President Bill Kaye wrote in an emailed statement to Bisnow. He is marketing the property along with David Gast. JBG Smith has pursued a strategy of selling assets since early 2018, when it said it viewed D.C. as a seller’s market with elevated pricing. It set a goal in 2018 to generate $700M through asset sales, which it accomplished. Many of those sales were stand-alone office buildings, including properties in Reston, K Street and Dupont Circle. The REIT then set another goal to sell $200M in assets this year. But early in the coronavirus crisis, JBG Smith CEO Matt Kelly told investors he expects the REIT will shift to become a net buyer of assets in the coming years as it anticipated a correction in pricing. In his Q2 letter to investors released Aug. 4, Kelly said the $200M sales target may be difficult to achieve because the pandemic has slowed the investment sales market, but he said JBG Smith is still looking to sell where it can.
Pulte plans to build 40 townhouses right next to the office building. Originally, the company pitched the same number of single family houses.
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