Vornado to Spin Off DC Portfolio in $8.4B Merger with JBG
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Atlantic Plumbing, a mixed-use property under construction by The JBG Cos. in Washington, D.C.
Washington—Calling it a “key milestone” in its value creation strategy, Vornado Realty Trust is spinning off its Washington, D.C.-area portfolio and merging it with The JBG Cos. in what will be a regional commercial real estate “powerhouse” worth $8.4 billion.
In the tax-free spin-off, Vornado will merge the business known as Vornado/Charles E. Smith with the operating company and certain assets of JBG, a leading Washington, D.C., real estate company that controls more than 22 million square feet of urban-infill commercial and multifamily properties and a valuable land bank for future development. The combined company will be named JBG Smith Properties and will the largest, market-leading, best-in-class, pure-play Washington, D.C., real estate company with 79 assets, including 50 office properties totaling about 11.8 million square feet. It will also own 18 multifamily properties with 4,451 residential units and 11 other properties in some of the region’s top submarkets including Crystal City, Pentagon City, the Rosslyn-Ballston Corridor, all in Virginia, and Bethesda, Md…
