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JBG SMITH signs agreement with Amazon for Northern Va. HQ

JBG SMITH Properties said that Amazon.com Inc. selected it as its partner to house and develop Amazon's new headquarters at the newly defined National Landing neighborhood in Arlington, Va.

The two companies entered an agreement whereby Amazon will have exclusive rights to purchase land from JBG SMITH in National Landing and lease space in select JBG SMITH buildings. National Landing comprises Crystal City, the eastern portion of Pentagon City and the northern portion of Potomac Yard. JBG SMITH owns 6.2 million square feet of existing office space, 2,850 multifamily units and controls 7.4 million square feet of additional development opportunities in the neighborhood, excluding Amazon's proposed land purchase.

According to the agreement, Amazon will purchase Pen Place and Metropolitan 6, 7, 8 land in Arlington, which has an estimated potential development density of up to 4.1 million square feet, and lease about 500,000 square feet of existing office space at 241 18th St. S., 1800 South Bell St. and 1770 Crystal Drive.

SNL ImageJBG SMITH’s Holdings in National Landing
Source: Business Wire

JBG SMITH will act as the development partner, property manager and retail leasing agent for Amazon. Amazon will start predevelopment and planning of its first office building this year, and construction will begin in 2019. JBG SMITH will accelerate the development of Central District Retail, which will contain approximately 130,000 square feet of space, and 1900 Crystal Drive, which will offer 750 multifamily units in two buildings.

As part of the long-term incentive agreement between Amazon and the state of Virginia for creation of a minimum of 25,000 jobs, the state will invest up to $295 million of non-general-fund money in transportation projects, which will be used for additional entrances to the Metro rail stations at Crystal City and Potomac Yard, improvements to Route 1, a connector bridge from Crystal City to Washington National Airport, and a transit-way expansion supporting Pentagon City, Crystal City and Potomac Yard.

The funding could increase if Amazon creates more than 25,000 jobs.

The state will also make performance-based investments of up to $375 million over 20 years for new master's degree programs in computer science and related fields at George Mason's Arlington campus and for Virginia Tech to establish a new innovation campus in Alexandria, Va.

In addition, Arlington County and the City of Alexandria will fund more than $570 million for transportation projects.