Amazon closes $198M PenPlace purchase from JBG Smith

Amazon.com Inc. has acquired the 11-acre PenPlace development site,  part of its HQ2, its East Coast headquarters, from Bethesda, Maryland-based JBG Smith Properties for $198 million, JBG Smith announced Monday.

Arlington County in April approved the 3.3 million square feet of office space spread across three 22-story buildings and Amazon’s planned spiral “Helix” building, including 100,000 square feet of retail and 2.5 acres of open space. It is bordered by Army Navy Drive, South Eads Street, 12th Street and South Fern Street. PenPlace is the second phase of Amazon’s HQ2 East Coast headquarters, following the first phase, Metropolitan Park. PenPlace will also have a 20,000-square-foot Arlington County High School and a daycare.

“As we saw with the sale of Metropolitan Park to Amazon in 2020, finalizing this deal allows us to move forward with our partners, realize Amazon’s vision and complete its second home here in the region,” JBG Smith CEO Matt Kelly said in a statement. Metropolitan Park and PenPlace will bring exciting new amenities to the broader neighborhood including public parks, dynamic retail, and infrastructure improvements.”

Metropolitan Park has two 22-story office buildings, 50,000 square feet of retail space, a roughly 2-acre park space and a 700-meeting center that community groups will be able to use for free.

Amazon and JBG Smith also “topped out” the 22nd and final level of Metropolitan Park, JBG Smith announced Monday. The two buildings are scheduled to be completed next year. Amazon’s HQ2 already has 5,000 workers. Amazon’s more than $2.5 billion investment in HQ2 will result in 25,000 jobs over the next decade.