Stroock represented private real estate investment trust Carr Properties in a $300 million convertible debt investment by Clal Insurance Enterprises Holdings Ltd. AlonyHetz Properties and Investments Ltd. and institutional investors advised by JPMorgan Asset Management are the lead investors in Carr Properties.
According to the terms of the deal, Clal Insurance funded a $300 million convertible debt note to Carr Properties. The debt will convert into Carr Properties’ equity by August 2018. The transaction closed on December 20, 2017, with funding taking place in early 2018.
Stroock corporate partner Bradley Kulman led the deal team, which consisted of lawyers from the firm’s New York, Washington, D.C., and Miami offices, and also included partners Jeff Keitelman and Steven Moskowitz(real estate), and Mayer Greenberg and Micah Bloomfield (tax), as well as associates Deborah Bernstein, Daniel Martinez, Jonathan Konig and Kelly Booker, and law school graduates Lauren Swanson and Natalie Lin.
Carr Properties is a privately held real estate investment trust in the greater Washington D.C. area. The company maintains ownership of 16 commercial office properties totaling over 4 million square feet, as well as five major development projects, in Washington, DC, Maryland, and Virginia. Upon completion, these projects will add an additional 2.4 million square feet of trophy-quality office space to the company’s portfolio.
Carr Properties has been a long-time client of Stroock. This transaction, which had unique tax and REIT aspects to it, necessitated the involvement of numerous disciplines, including corporate, real estate, tax, ERISA and environmental.
Stroock’s 85-member national real estate group helps clients structure, negotiate and close some of the country’s largest commercial real estate transactions including: the development and recapitalization of 10 Hudson Yards in NYC; the redevelopment of the former Washington Post site in the heart of Washington, D.C.; the sale of 1285 Avenue of the Americas located in Rockefeller Center; the sale of the Southeast Financial Center, an iconic office building in downtown Miami; the recapitalization of the Century Plaza Towers, the most recognizable trophy office complex in the Century City area of Los Angeles; the disposition of Two Independence Square serving as the headquarters for NASA in Washington D.C.; the 1.9 million square-foot mega-project of Essex Crossing on the Lower East Side of NYC; the acquisition of the Department of Veterans Affairs Hospital in Loma Linda, CA and the redevelopment of the World Trade Center site in Lower Manhattan.
Stroock provides strategic transactional, regulatory and litigation advice to advance the business objectives of leading financial institutions, multinational corporations and entrepreneurial businesses in the U.S. and globally. With a rich history dating back 140 years, the firm has offices in New York, Los Angeles, Miami and Washington, DC.