JBG Smith acquires Tysons Dulles Plaza for $42.3M

Bethesda, Maryland-based developer JBG Smith announced last week that it has acquired Tysons Dulles Plaza — a 15-acre office campus in Tysons that houses three buildings.

The financial terms of the acquisition were not disclosed. But Fairfax County tax records show that Tysons Dulles Holdings, which has a principal office that shares the same address as JBG Smith’s corporate headquarters, purchased the properties for $42.3 million on May 5.

The campus, which has approximately 500,000 square feet of offices and 1,553 parking spaces, is walkable to the Silver Line’s Spring Hill Metro station and is located at 1410, 1420 and 1430 Spring Hill Road.

JBG Smith plans to redevelop one of the three office buildings for residential use. The other two buildings will be upgraded and modernized but will be preserved for office use.

The company declined to provide additional details about the redevelopment, including which of the three office buildings would become residential or the timeline of development.

“Notwithstanding regional economic headwinds and the negative impact of remote work on the office sector, we see distress leading to extremely attractive office investment opportunities for the first time in more than a decade,” George Xanders, chief investment officer at JBG Smith, said in a statement. “We are actively exploring additional office investments, similar to Tysons Dulles Plaza, especially where we can apply our proven mixed-used redevelopment expertise.”

Last year, JBG Smith began construction on a $40 million renovation project for an 11-floor commercial building in Arlington County slated for completion in 2026. The property is located in Arlington’s National Landing neighborhood, where Amazon.com’s HQ2 is based.

In a statement, JBG Smith Chief Strategy Officer Evan Regan-Levine said the company’s success in National Landing will serve as a “blueprint” for redeveloping underperforming assets in the region.

“In National Landing we were able to reduce the stock of operating office buildings and transform many of them into new residential and retail offerings — aligning with lower levels of net demand for office — while also improving the desirability of the neighborhood,” Regan-Levine said. “We see the same opportunity at Tysons Dulles Plaza.”