Item 2. Properties
ITEM 2. PROPERTIES
Note on presentation of "at share" information. We present certain financial information and metrics "at JBG SMITH Share," which is calculated on an entity-by-entity basis. "At JBG SMITH Share" information, which we also refer to as being "at share," "our pro rata share" or "our share," is not, and is not intended to be, a presentation in accordance with GAAP. Because as of December 31, 2020, approximately 11.6% of our assets, as measured by total square feet, were held through real estate ventures in which we own less than 100% of the ownership interest, we believe this form of presentation, which includes our economic interests in the unconsolidated real estate ventures, provides investors important information regarding a significant component of our portfolio, its composition, performance and capitalization. We classify our portfolio as "operating," "under-construction," "near-term development" or "future development."
The following tables provide information about each of our commercial, multifamily, near-term development pipeline and future development pipeline portfolios as of December 31, 2020. Many of our near-term and future development pipeline assets are adjacent to or an integrated component of operating commercial or multifamily assets in our portfolio. A significant number of our assets included in the following tables are held through real estate ventures with third parties or are subject to ground leases. In addition to other information, the following tables indicate our percentage ownership, whether the asset is consolidated or unconsolidated, and whether the asset is subject to a ground lease.
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Table of Contents
Commercial Assets
Total
%
Same Store (2) :
Square
%
Office %
Retail %
Commercial Assets
Ownership
C/U (1)
YTD 2019-2020
Feet
Leased
Occupied
Occupied
D.C.
Universal Buildings
100.0
%
C
Y
659,459
96.9%
96.5%
99.6%
2101 L Street
100.0
%
C
Y
378,400
82.4%
81.4%
92.6%
1730 M Street (3)
100.0
%
C
Y
204,860
88.0%
87.5%
100.0%
1700 M Street (4)
100.0
%
C
Y
34,000
-
-
-
L'Enfant Plaza Office-East (3)
49.0
%
U
Y
397,057
88.3%
88.3%
-
L'Enfant Plaza Office-North
49.0
%
U
Y
297,620
93.4%
93.8%
87.1%
500 L'Enfant Plaza
49.0
%
U
N
215,218
96.1%
96.1%
-
L'Enfant Plaza Retail (3)
49.0
%
U
Y
119,291
74.7%
100.0%
70.6%
The Foundry
9.9
%
U
Y
225,622
89.6%
89.3%
100.0%
1101 17th Street
55.0
%
U
Y
208,860
84.6%
83.8%
100.0%
VA
Courthouse Plaza 1 and 2 (3)
100.0
%
C
Y
630,045
81.7%
80.4%
95.5%
1550 Crystal Drive
100.0
%
C
Y
547,551
86.4%
86.6%
82.4%
2121 Crystal Drive
100.0
%
C
Y
505,349
76.2%
76.2%
-
2345 Crystal Drive
100.0
%
C
Y
500,274
77.4%
77.0%
100.0%
RTC-West (5)
100.0
%
C
Y
470,037
90.4%
91.0%
84.8%
2231 Crystal Drive
100.0
%
C
Y
468,262
83.3%
81.5%
97.4%
2011 Crystal Drive
100.0
%
C
Y
440,410
73.7%
74.0%
50.3%
2451 Crystal Drive
100.0
%
C
Y
401,902
78.9%
78.4%
92.6%
1235 S. Clark Street
100.0
%
C
Y
384,437
97.8%
92.8%
100.0%
241 18th Street S.
100.0
%
C
Y
361,799
95.1%
93.6%
83.8%
251 18th Street S.
100.0
%
C
Y
339,628
96.2%
100.0%
71.9%
1215 S. Clark Street
100.0
%
C
Y
336,159
100.0%
100.0%
100.0%
201 12th Street S.
100.0
%
C
Y
329,607
99.8%
99.8%
100.0%
800 North Glebe Road
100.0
%
C
Y
303,644
98.5%
100.0%
82.3%
2200 Crystal Drive
100.0
%
C
Y
283,608
82.8%
82.8%
-
1901 South Bell Street
100.0
%
C
Y
276,961
91.5%
92.1%
-
1225 S. Clark Street
100.0
%
C
Y
276,594
94.3%
94.1%
100.0%
Crystal City Marriott (345 Rooms)
100.0
%
C
Y
266,000
-
-
-
2100 Crystal Drive
100.0
%
C
Y
254,258
99.7%
99.7%
-
1800 South Bell Street
100.0
%
C
N
206,186
99.2%
100.0%
88.8%
200 12th Street S.
100.0
%
C
Y
202,708
82.6%
82.6%
-
Crystal City Shops at 2100
100.0
%
C
Y
53,174
84.4%
-
84.4%
Crystal Drive Retail
100.0
%
C
Y
56,965
87.9%
-
87.9%
Central Place Tower (3)
50.0
%
U
Y
552,495
96.2%
96.0%
100.0%
Stonebridge at Potomac Town Center (6)
10.0
%
U
Y
503,613
93.7%
-
91.9%
Rosslyn Gateway-North
18.0
%
U
Y
145,003
81.9%
80.5%
96.0%
Rosslyn Gateway-South
18.0
%
U
Y
102,791
78.3%
81.3%
40.4%
MD
7200 Wisconsin Avenue
100.0
%
C
Y
267,703
78.4%
75.3%
100.0%
One Democracy Plaza (3) (6)
100.0
%
C
Y
212,894
87.1%
87.0%
100.0%
Total / Weighted Average
12,420,444
88.5%
88.1%
89.1%
Recently Delivered
D.C.
1900 N Street (3)
55.0
%
U
N
269,035
74.1%
76.4%
-
MD
4747 Bethesda Avenue (7)
100.0
%
C
N
300,364
90.9%
90.5%
55.9%
Total / Weighted Average
569,399
83.0%
83.8%
35.4%
Operating - Total / Weighted Average
12,989,843
88.3%
87.9%
88.3%
Under-Construction
VA
1770 Crystal Drive
100.0
%
C
273,897
98.3%
Total / Weighted Average
13,263,740
88.5%
Totals at JBG SMITH Share
In-service assets
10,665,525
88.2%
87.8%
88.7%
Recently delivered assets
448,333
85.4%
85.8%
42.4%
Operating assets
11,113,858
88.1%
87.7%
87.7%
Under-construction assets
273,897
98.3%
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Table of Contents
Note: At 100% share, unless otherwise noted. Excludes our 10% subordinated interest in one commercial building held through a real estate venture in which we have no economic interest.
(1) "C" denotes a consolidated interest. "U" denotes an unconsolidated interest.
(2) "Y" denotes an asset as same store and "N" denotes an asset as non-same store.
(3) Asset is subject to a ground lease.
(4) This asset, a development site in Washington, D.C., was leased by us (as landlord) in 2018 for a 99-year term, with no extension options.
(5) The following asset contains space that is held for development or not otherwise available for lease. This out-of-service square footage is excluded from area, leased, and occupancy metrics in the above table.
Not Available
Commercial Asset
In-Service
for Lease
RTC - West
470,037
17,988
(6) Not Metro-served.
(7) Includes our corporate office lease for approximately 84,400 square feet.
Multifamily Assets
Total
%
Same Store (2) :
Number of
Square
%
Multifamily %
Retail %
Multifamily Assets
Ownership
C/U (1)
YTD 2019-2020
Units
Feet
Leased
Occupied
Occupied
D.C.
West Half
100.0
%
C
N
465
384,976
53.8%
49.2%
57.6%
Fort Totten Square
100.0
%
C
Y
345
384,956
97.3%
92.5%
100.0%
WestEnd25
100.0
%
C
Y
283
273,264
96.8%
92.2%
-
F1RST Residences
100.0
%
C
N
325
270,928
91.8%
83.4%
100.0%
1221 Van Street
100.0
%
C
N
291
225,530
95.4%
90.0%
100.0%
North End Retail
100.0
%
C
Y
—
27,355
100.0%
N/A
94.1%
The Gale Eckington
5.0
%
U
Y
603
466,716
89.7%
81.4%
100.0%
Atlantic Plumbing
64.0
%
U
Y
310
245,527
97.1%
93.9%
97.4%
VA
RiverHouse Apartments
100.0
%
C
Y
1,676
1,327,551
94.2%
93.1%
100.0%
The Bartlett
100.0
%
C
Y
699
619,372
91.5%
87.3%
100.0%
220 20th Street
100.0
%
C
Y
265
271,476
95.5%
88.7%
100.0%
2221 S. Clark Street
100.0
%
C
Y
216
164,743
100.0%
100.0%
-
Fairway Apartments (3)
10.0
%
U
Y
346
370,850
97.4%
96.5%
-
MD
Falkland Chase-South & West
100.0
%
C
Y
268
222,754
94.0%
92.5%
-
Falkland Chase-North
100.0
%
C
Y
170
112,186
99.4%
98.2%
-
Galvan
1.8
%
U
Y
356
390,293
98.0%
94.1%
97.1%
The Alaire (4)
18.0
%
U
Y
279
266,673
96.4%
92.5%
90.0%
The Terano (4) (5)
1.8
%
U
Y
214
196,921
96.6%
91.6%
88.8%
Total / Weighted Average
7,111
6,222,071
92.4%
88.4%
94.1%
Recently Delivered
D.C.
The Wren (6)
96.1
%
C
N
433
332,682
55.6%
33.5%
100.0%
901 W Street
100.0
%
C
N
161
158,431
47.7%
28.0%
50.9%
900 W Street
100.0
%
C
N
95
70,150
-
-
-
Total / Weighted Average
689
561,263
46.4%
27.6%
82.9%
Operating - Total / Weighted Average
7,800
6,783,334
88.6%
83.0%
92.7%
Under-Construction
MD
7900 Wisconsin Avenue
50.0
%
U
322
359,025
Total
8,122
7,142,359
Totals at JBG SMITH Share
In-service assets
5,327
4,561,220
91.3%
87.8%
93.5%
Recently delivered assets
672
548,421
46.2%
27.4%
82.5%
Operating assets
5,999
5,109,641
86.5%
81.1%
91.6%
Under-construction assets
161
179,513
Note: At 100% share, unless otherwise noted.
(1) "C" denotes a consolidated interest. "U" denotes an unconsolidated interest.
(2) "Y" denotes an asset as same store and "N" denotes an asset as non-same store.
(3) Not Metro-served.
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Table of Contents
(4) Asset is subject to a ground lease.
(5) The following asset contains space that is held for development or not otherwise available for lease. This out-of-service square footage is excluded from area, leased, and occupancy metrics in the above table.
Not Available
Multifamily Asset
In-Service
for Lease
The Terano
196,921
2,847
(6) Ownership percentage reflects expected dilution of our real estate venture partner as contributions are funded during the construction of the asset. As of December 31, 2020, our ownership interest was 96.0%.
Near-Term Development Pipeline
Estimated
Estimated Potential Development Density (SF)
Number of
Asset
Total
Office
Multifamily
Retail
Units
D.C.
5 M Street Southwest
705,400
—
675,400
30,000
615
Gallaudet Parcel 1-3 (1)
818,000
—
756,400
61,600
840
VA
—
1900 Crystal Drive (2)
820,400
—
777,600
42,800
810
2000 South Bell Street
394,400
—
375,900
18,500
365
2001 South Bell Street
323,900
—
312,800
11,100
420
2250 Crystal Drive (3)
677,100
—
677,100
—
825
223 23rd Street
512,800
—
512,800
—
700
2525 Crystal Drive (4)
750,000
750,000
—
—
—
101 12th Street
239,600
234,400
—
5,200
—
RTC - West Trophy Office
396,000
380,000
—
16,000
—
Total / Weighted Average
5,637,600
1,364,400
4,088,000
185,200
4,575
Note: At JBG SMITH share.
(1) Controlled through an option to acquire a leasehold interest. As of December 31, 2020, the weighted average remaining term for the option is 2.4 years.
(2) Asset is fully entitled and designed.
(3) In the fourth quarter of 2020, 2300 Crystal Drive was renamed 2250 Crystal Drive.
(4) Estimated Potential Development Density (SF) use is subject to change based on market demand and entitlement.
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Table of Contents
Future Development Pipeline
Estimated
Commercial SF /
Multifamily
Number of
Estimated Potential Development Density (SF)
Units to be
Region
Assets
Total
Office
Multifamily
Retail
Replaced (1)
Owned
D.C.
D.C.
6
1,024,400
312,100
703,300
9,000
—
VA
National Landing (2)
7
4,065,700
1,335,000
2,656,500
74,200
206,186 SF
Reston
4
2,193,200
544,800
1,462,400
186,000
15 units
Other VA
4
199,600
88,200
102,100
9,300
21,675 SF
15
6,458,500
1,968,000
4,221,000
269,500
227,861 SF / 15 units
MD
Silver Spring
1
1,276,300
—
1,156,300
120,000
170 units
Greater Rockville
2
20,400
19,200
—
1,200
—
3
1,296,700
19,200
1,156,300
121,200
170 units
Total / weighted average
24
8,779,600
2,299,300
6,080,600
399,700
227,861 SF / 185 units
Optioned (3)
D.C.
D.C.
3
1,133,600
—
1,013,900
119,700
—
VA
Other VA
1
11,300
—
10,400
900
—
Total / weighted average
4
1,144,900
—
1,024,300
120,600
—
Held for Sale
VA
National Landing (4)
1
2,082,000
2,082,000
—
—
—
Total / Weighted Average
29
12,006,500
4,381,300
7,104,900
520,300
227,861 SF / 185 units
Note: At JBG SMITH share.
(1) Represents management's estimate of the total office and/or retail rentable square feet and multifamily units that would need to be redeveloped to access some of the estimated potential development density.
(2) In December 2020, we acquired the Americana Portfolio for an aggregate total of $65.0 million. $47.3 million was allocated to the former Americana Hotel site, of which $20.0 million has been deferred until the earlier of the approval of certain entitlements or January 1, 2023, and $17.7 million was allocated to the other three parcels. The former Americana Hotel site has the potential to accommodate up to approximately 550,000 square feet of new development density and is located directly across the street from Amazon’s future headquarters.
(3) As of December 31, 2020, the weighted average remaining term for the optioned future development pipeline assets is 4.1 years.
(4) Represents the estimated potential development density that we have sold to Amazon pursuant to an executed purchase and sale agreement. In March 2019, we entered into an agreement for the sale of Pen Place, a land site with an estimated potential development density of approximately 2.1 million square feet, for approximately $149.9 million, subject to customary closing conditions. The sale of Pen Place to Amazon is expected to close in 2021.
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Table of Contents
Major Tenants
The following table sets forth information for our 10 largest tenants by annualized rent for the year ended December 31, 2020:
At JBG SMITH Share
Annualized
% of Total
Number of
Square
% of Total
Rent
Annualized
Tenant
Leases
Feet
Square Feet
(In thousands)
Rent
GSA
61
2,277,609
23.2
%
$
92,422
20.4
%
Amazon
4
598,526
6.1
%
26,113
5.8
%
Family Health International
3
298,116
3.0
%
15,852
3.5
%
Gartner, Inc
1
174,424
1.8
%
11,792
2.6
%
Lockheed Martin Corporation
2
232,598
2.4
%
11,167
2.5
%
Arlington County
2
235,779
2.4
%
10,341
2.3
%
WeWork (1)
2
163,918
1.7
%
8,713
1.9
%
Booz Allen Hamilton Inc
3
159,610
1.6
%
7,561
1.7
%
Greenberg Traurig LLP
1
101,602
1.0
%
7,318
1.6
%
Accenture LLP
2
116,736
1.2
%
7,004
1.5
%
Total
81
4,358,918
44.4
%
$
198,283
43.9
%
Note: Includes all in-place leases as of December 31, 2020 for office and retail space within our Operating Portfolio. As signed but not yet commenced leases commence and tenants take occupancy, our tenant concentration will change.
(1) Excludes the WeLive lease at 2221 South Clark Street.
Lease Expirations
The following table sets forth as of December 31, 2020 the scheduled expirations of tenant leases in our Operating Portfolio for each year from 2021 through 2029 and thereafter, assuming no exercise of renewal options or early termination rights:
At JBG SMITH Share
Estimated
% of
Annualized
% of
Annualized
Total
Annualized
Rent Per
Number of
Square
Total
Rent
Annualized
Rent Per
Square Foot at
Year of Lease Expiration
Leases
Feet
Square Feet
(in thousands)
Rent
Square Foot
Expiration (1)
Month-to-Month
50
139,066
1.4
%
$
3,715
0.8
%
$
26.71
$
26.71
2021
107
809,530
8.2
%
39,012
8.6
%
48.19
48.44
2022
102
1,532,193
15.6
%
67,051
14.8
%
43.76
44.66
2023
115
614,221
6.2
%
27,173
6.0
%
44.24
46.38
2024
101
1,506,715
15.3
%
70,368
15.6
%
46.70
49.43
2025
92
687,676
7.0
%
30,667
6.8
%
44.60
47.94
2026
68
395,338
4.0
%
17,461
3.9
%
44.17
50.09
2027
51
488,682
5.0
%
22,163
4.9
%
45.35
52.20
2028
47
398,397
4.1
%
19,238
4.3
%
48.29
56.61
2029
35
420,817
4.3
%
21,385
4.7
%
50.82
60.60
Thereafter
113
2,836,816
28.9
%
133,912
29.6
%
47.21
60.53
Total / Weighted Average
881
9,829,451
100.0
%
$
452,145
100.0
%
$
46.00
$
52.13
Note: Includes all in-place leases as of December 31, 2020 for office and retail space within our Operating Portfolio and assuming no exercise of renewal options or early termination rights. The weighted average remaining lease term for the entire portfolio is 6.1 years.
(1) Represents monthly base rent before free rent, plus tenant reimbursements, as of lease expiration multiplied by 12 and divided by square feet. Triple net leases are converted to a gross basis by adding tenant reimbursements to monthly base rent. Tenant reimbursements at lease expiration are estimated by escalating tenant reimbursements as of December 31, 2020, or management's estimate thereof, by 2.75% annually through the lease expiration year.
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Table of Contents
ITEM 3. LEGAL PROCEEDINGS
We are, from time to time, involved in legal actions arising in the ordinary course of business. In our opinion, the outcome of such matters is not expected to have a material adverse effect on our financial position, results of operations or cash flows.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
PART II