The JBG Companies has bought a 320,000-square-foot retail centre in Maryland from institutional investors, advised by Prudential Real Estate Investors.
The Chevy Chase, Maryland real estate investment firm acquired The Village at Waugh Chapel centre in partnership with JBG Rosenfeld Retail, a joint venture between development company Rosenfeld Realty and JBG, and Bethesda, Maryland-based real estate investment firm Buvermo Investments.
JBG bought the centre, which is 96 percent leased to more than 60 tenants, through its JBG Fund VII, which is targeting $900 million in capital, and its existing $600 million JBG Fund VI. The firm declined to disclose financial terms, but sources familiar with the deal said the consortium paid roughly $70 million.
The retail asset – a grocery-anchored retail centre and a regional big-box centre – was bought from institutional clients advised by Prudential Real Estate Investors, JBG said in a statement.
In a statement JBGR principal Grant Ehat claimed the deal was one of the largest seen in Maryland in two years, saying it signaled “a thaw in the capital markets and an upswing in the beleaguered retail sector”.
In May last year, JBG teamed up with Buvermo Properties to buy a 228,000-square-foot government-leased office from Morgan Stanley Real Estate Funds for $45 million – $10 million less than price Morgan Stanley paid in October 2005 when it originally acquired the property from JBG and Buvermo.