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BG Smith Properties is significantly scaling back its presence in Washington, D.C., with a major sale of one of its apartment complexes. The company has sold Fort Totten Square, a 425,000-square-foot property at 5661 Third Street NE, for $86.8 million to a joint venture between LBX Investments and Broadwill. This deal works out to over $204 per square foot.

    The buyer secured a $60.8 million loan from Greystone to finance the acquisition, marking LBX's entry into the Washington, D.C. market. Fort Totten Square features 345 units of mid-rise residential space and a 130,000-square-foot retail component anchored by Walmart, with other tenants including Subway, Five Guys, and Wingstop. The property is fully leased for retail and had a 93.3% occupancy rate as of late June.

    The sale is part of JBG Smith's broader strategy to reduce its holdings in the nation's capital. The company has been involved in several high-profile transactions recently, including the potential foreclosure auction of D.C.'s L'Enfant Plaza complex. With a portfolio spanning 13.4 million square feet of office, multifamily, and retail space, as well as 9.3 million square feet of mixed-use development in the pipeline, JBG Smith is led by Matt Kelly and has developed Amazon's HQ2 in Crystal City, Virginia.

    LBX Investments has been expanding its presence nationwide, with a notable deal in Chicago two years ago where it acquired a 228,000-square-foot shopping center from RPT Realty for $34.6 million.