Bethesda's JBG Smith biggest winner in D.C.'s potential loss of Capitals, Wizards

The Montgomery County Council and Maryland Gov. Wes Moore may have been asleep at the switch during the tug-of-war over the future home of the Washington Wizards and Washington Capitals, but a company in their jurisdiction may pull off the biggest win in the teams' potential move to Virginia. Bethesda's JBG Smith is the landowner of the proposed Potomac Yard arena and mixed-use development sites in Alexandria. If the teams relocate as envisioned by Virginia Gov. Glenn Youngkin and team owner Ted Leonsis, the real estate development firm will stand to be ultimate victor from a business standpoint. Those potential big profits might still benefit the county and state revenue coffers in Maryland, even if the gaudy bragging rights to the actual teams will accrue to Virginia. 

Successful relocation of the teams to Potomac Yard, and the related development, dovetail perfectly with JBG Smith's existing plans and vision for the National Landing area. The firm will be able to sell the proposed sites to a Virginia sports development authority, and would be the developer of the corporate Monumental Sports Entertainment headquarters, arena, media studio, performing arts venue, and e-sports facility proposed as part of the overall plan. And the sports-related growth at Potomac Yards would boost the earning potential for JBG Smith's other National Landing properties, of which Amazon's HQ2 is the crown jewel.

Of course, HQ2's ultimate benefit to Northern Virginia remains to be seen, as Amazon has not been exempt from the work-from-home revolution and other stresses on its businesses. How many jobs and how many square feet of office space Amazon will eventually need at National Landing is up in the air at this point. How much Virginia taxpayers will shell out for a billionaire to move his sports teams is also not set in stone today. But the additional development opportunities the move would provide could not have come at a better time for JBG Smith.

Washington D.C. Mayor Muriel Bowser is in the unenviable position of not only possibly losing two of the city's professional sports teams at once, but of having had to make a desperate bid of $500,000,000 at the 11th hour that doesn't appear to have persuaded Leonsis to stay. Such a two-team exit is a potential nightmare for Moore in Maryland, as he tries to keep the Washington Commanders and Baltimore Orioles in the state. His cringeworthy pitch to the Commanders in a VIP suite in "Raljon," as recounted by The Washington Post, did not reflect the bargaining prowess his Wall Street resume would lead us to believe he would have. Moore's inabililty to find immediate success in attracting major companies to Maryland over the past 11 months, despite a Rolodex filled with celebrity and Fortune 500 friends, has raised eyebrows among those closely watching Maryland's economic development efforts.

The fact that Moore was not in the conversation regarding the Wizards and Capitals, when the firm at the center of the intrigue is in his own state, is unlikely to reduce those whispered doubts in the business community. But the silver lining in this case is that JBG Smith - and Montgomery County and Maryland, if they actually get their share of the firm's increased revenue - will likely gain financially, even if Virginia ends up overpaying for the teams, as the company will still profit regardless. Virginia's elected officials could look like suckers a decade from now, but the real winner would still be at 4747 Bethesda Avenue.

Bethesda-based JBG Smith announces it has achieved portfolio-wide carbon neutrality

4747 Bethesda Avenue lobby

JBG Smith, a real estate development firm headquartered at 4747 Bethesda Avenue, announced this morning that it has achieved carbon neutrality across its entire operating portfolio of properties. It accomplished this by purchasing verified carbon offsets for scope-one carbon emissions, and renewable energy credits (RECs) for scope-two electrical consumption.

Galvan development in Rockville

In order to maintain carbon neutral status in the coming years, the company said it will have to take further actions. Those actions will include:

1.       Driving down energy consumption across its existing portfolio

2.       Reducing anticipated energy consumption and embodied carbon for its development pipeline

3.       Deploying onsite solar where most impactful

4.       Exploring offsite solar opportunities and bringing additional renewables to the national electrical grid 

5.       Addressing the remainder of carbon emissions with verified carbon offsets and renewable energy credits (RECs)

7200 Wisconsin in Bethesda

“Achieving carbon neutrality across our operating portfolio provides JBG Smith with a strong and compelling competitive advantage," JBG Smith CEO Matt Kelly said in a statement. "Our office, residential, and retail customers increasingly demand this from their real estate space and service partners and our investors expect that we are doing all that we can to address this looming and critical threat, Our collective actions over the next decade are essential in offsetting the current carbon emission trajectory and, through sustainable best practices, JBG Smith remains committed to positively impacting the communities we serve at every level.”

Terano in Rockville

JBG Smith has developed, owns or manages many properties in Montgomery County, including the Trader Joe's-anchored 8001 Woodmont and 7200 Wisconsin in Bethesda, the Rock Grove shopping center in Shady Grove, and the Galvan and Terano in Rockville. Its most prominent venture is the Amazon HQ2 National Landing project in Arlington County, Virginia.

Rock Grove shopping center

 

Orangetheory Fitness windows pressed into marketing service at 8001 Woodmont

There hasn't been any construction activity on the interior fit-out of Orangetheory Fitness at JBG Smith's new 8001 Woodmont development in downtown Bethesda. It won't be easy to see when there is, as the storefront windows of the future gym have now been covered with ads for the luxury apartments for lease above it. 

Orangetheory, Dryy (dry cleaning) and anchor Trader Joe's have claimed spots in the building's ground floor retail space so far. Trader Joe's is the only one currently under construction. One 1958 square foot space remains available for lease.

New Bethesda Trader Joe's construction update (Photos)

Construction on the new Trader Joe's grocery store at 7900 Wisconsin Avenue began on June 28, 2021. Here's a look at the progress on the interior fit-out as of today. Trader Joe's is the anchor retail tenant at this JBG Smith-developed building, which is branded as 8001 Woodmont. 

The number one question from readers has been, "Will the existing Trader Joe's down the street close when this opens?" Trader Joe's has so far declined to officially comment on that, so all is speculation on that front at the moment. My speculation is that it will close, and that is why Douglas Development brought in Target to that mall. Others predict the profitability of the existing location will allow the chain to sustain two stores downtown.

Trader Joe's construction begins at new downtown Bethesda location

Construction has begun this morning at the new Trader Joe's location at 7900 Wisconsin Avenue in downtown Bethesda. The popular grocery store will be the anchor retail tenant at JBG Smith's new 8001 Woodmont mixed-use development. That building has been scheduled for a Q3 2021 delivery. Trader Joe's is currently located at 6831 Wisconsin Avenue.

Sneak peek: Luxury lobby and public plaza at 8001 Woodmont in Bethesda (Photos)

Barricades have been removed from the public promenade and plaza that connects Wisconsin and Woodmont Avenues under JBG Smith's new 8001 Woodmont apartment building. Here is a photo tour of that hardscaped and landscaped space, as well as a sneak peek at the upscale lobby, with art and furnishings in place. Still to be constructed are the interiors of Trader Joe's and Orangetheory Fitness.

Woodmont Avenue sidewalk reopens at 8001 Woodmont in Bethesda

The final sidewalk closure related to JBG Smith's 8001 Woodmont development has reopened to the public. Pedestrians can once again access the sidewalk on the Woodmont Avenue side of the property. The new sidewalk features the Bethesda-streetscape-standard red brick pavers. 

Bethesda construction update: 8001 Woodmont (Video+Photos)

Workers are putting the finishing touches on the new grass and hardscaping on the pedestrian promenade at JBG Smith's new 8001 Woodmont development at 7900 Wisconsin Avenue in Bethesda. One worker was up on a ladder on the Wisconsin side, working on the area where the stone facade meets the trim above the ground floor. There's also been some work going on in the street along the Woodmont side of the building, requiring temporary lane closures.

Right lane of SB Wisconsin Avenue reopens in front of 8001 Woodmont construction site

Grass planted on public promenade

The right lane of southbound Wisconsin Avenue (MD 355) has reopened in front of 7900 Wisconsin, where it has been closed during the construction of JBG Smith's 8001 Woodmont development. A grassy area has also been planted, on part of the public promenade that provides a new short-cut between Wisconsin and Woodmont Avenue. Ground floor retail tenants along the promenade include anchor Trader Joe's and Orangetheory Fitness. Delivery of 8001 Woodmont is expected in mid-to-late 2021.