Amazon pays $198 million for the PenPlace HQ2 development site

Amazon has completed the purchase of its future PenPlace chunk of HQ2, paying $198 million to developer JBG Smith for the 12 acres that will be developed as the final portion of HQ2.

The Pentagon City, Virginia, the property will comprise 3.2 million square feet of new development, including office buildings, shops, 2.75 acres of open public space, and HQ2’s distinctive Helix tower.

Arlington County recently approved the construction.

In 2020, Amazon purchased the Metropolitan Park phase of its HQ2 project, which is now under construction.

Amazon and JBG Smith recently celebrated the “topping out” of Metropolitan Park’s 22nd and final level. Amazon has hired 5,000 people for its HQ2 so far, with at least 20,000 more planned in the coming years.

“Finalizing this deal allows us to move forward with our partners, realize Amazon’s vision and complete its second home here in the region. Metropolitan Park and PenPlace will bring exciting new amenities to the broader neighborhood including public parks, dynamic retail and infrastructure improvements.” –JBG Smith Executive Officer Matt Kelly

Based in Bethesda, Maryland JBG Smith, which owns the Crystal City office buildings that Amazon has leased for its initial HQ2 employees, is the developer for both Metropolitan Park and PenPlace. Metropolitan Park is scheduled to open next year. PenPlace will arrive in 2026.

Featured Picture Credit: Amazon