Stroock represents Carr Properties in convertible debt investment by Clal Insurance Enterprises
Stroock has represented private real estate investment trust Carr Properties in a USD300 million convertible debt investment by Clal Insurance Enterprises Holdings Ltd.
Alony Hetz 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 USD300 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.