LOS ANGELES – December 18, 2014 – CBRE Global Investment Partners and The JBG Companies have formed a programmatic joint venture designed to acquire high-quality assets in the Washington, D.C., metro area. The joint venture initially intends to invest approximately $250 million of equity to acquire $500 million of office, retail and multifamily assets and has the potential to expand further.
The joint venture, which will invest funds on behalf of a club of CBRE Global Investment Partners investors and the JBG Investment Fund IX, has acquired as its first investment The Foundry, a 232,000 square foot office building in the Georgetown submarket of Washington, D.C. The building boasts a unique layout that can accommodate multiple tenant needs. It also affords easy access to the restaurants and retail of Georgetown and the popular dining and amenities at Washington Harbor. JBG plans an extensive renovation of the asset.
The venture is targeting assets with a core-plus risk profile in attractive submarket locations that will offer the ability to grow income and add value through lease-up and light repositioning to create a core stabilized asset.
“This venture is a great fit with our strategy of investing with best-in-class operating partners,” said Paul C. Sisson, Head of the Americas for CBRE Global Investment Partners. “The JBG Companies has deep local relationships, market knowledge and operating expertise and this venture provides our clients an opportunity to acquire high-quality assets in one of the largest U.S. metros, which offers a diverse and resilient economy with strong demographics.”
“We are excited to partner with CBRE Global Investment Partners in the Washington market to uncover and pursue new opportunities where we can add value and creativity to the city’s skyline,” said Todd S. Rich, a JBG partner and a member of the company’s investment team. “This collaboration is a natural one that has great potential and is in keeping with our investment strategy as well as our long-standing commitment to enhancing the built environment in the Washington area. We look forward to a long-term relationship with CBRE Global Investment Partners.”
The acquisition is the second in the heart of Georgetown in two years for JBG. The company purchased 1025 Thomas Jefferson in 2012 to capitalize on its vibrancy and potential, and promptly repositioned the asset, which is now 99% leased, to appeal to a broad tenant base.
Bob Donhauser of Sage Capital introduced the CBRE Global Investment Partners-JBG relationship. The transaction was sourced through a relationship with John Wilkinson Boundary Companies, and William E. Kaye of Colliers International represented the seller.
About CBRE Global Investment Partners
CBRE Global Investment Partners is the independent division of CBRE Global Investors that delivers investment solutions customized for clients’ individual objectives by constructing portfolios using private funds, secondaries, co-investments and joint ventures, partnering with leading operators and fund managers for each strategy. Strategies cover the risk spectrum from core to enhanced, can be global or regional in nature, and use a variety of investment vehicles based on clients’ preferences. GIP has $12.5 billion in assets under management as of September 30, 2014. CBRE Global Investment Partners’ AUM includes investments in programs managed by the direct side of CBRE Global Investors.
About CBRE Global Investors
CBRE Global Investors is a global real estate investment management firm with $88.6 billion in assets under management* as of September 30, 2014. The firm sponsors investment programs across the risk/return spectrum for investors worldwide.
CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBG). It harnesses the research, investment sourcing and other resources of the world’s premier, full-service commercial real estate services and investment company for the benefit of its investors. CBRE Group, Inc. has approximately 44,000 employees in approximately 350 offices (excluding affiliates) worldwide. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com.
About The JBG Companies:
Headquartered in Chevy Chase, Md., The JBG Companies is a private real estate investment firm that develops, owns and manages office, residential, hotel and retail properties. The company has more than $10 billion in assets under management and development in the Washington, DC area. Since 1960, JBG has been active in the areas where it invests, striving to positively impact local communities. For more information, please visit www.JBG.com or find us on Twitter @TheJBGCompanies and Facebook facebook.com/TheJBGCompanies.
* Assets under management (AUM) refers to fair market value of real estate-related assets with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice, and which generally consist of properties and real estate-related loans; securities portfolios; and investments in operating companies, joint ventures and in private real estate funds under its fund of funds program. This AUM is intended principally to reflect the extent of CBRE Global Investors’ presence in the global real estate market, and its calculation of AUM may differ from the calculations of other asset managers.