WASHINGTON--(BUSINESS WIRE)--Carr Properties, a preeminent owner, operator and developer of office properties in the Washington, D.C. metropolitan area, announced today that it completed a transaction with Alony Hetz Properties and Investments, Ltd. (Alony Hetz), whereby Alony Hetz (TASE:ALHE) invested $330 million in the company. The proceeds of the investment were used to retire debt and reduce the ownership interest of JPMorgan Chase Bank, N.A.’s Commingled Pension Trust Fund (Special Situation Property) (“SSPF”), an investment trust fund managed by J.P. Morgan Asset Management. Carr Properties is now approximately 25% leveraged, providing it with significant capacity for growth.
Alony Hetz is one of Israel's largest commercial real-estate holding companies with investments in Tel Aviv, London, Zurich and Toronto. Alony Hetz and SSPF each now own approximately 44% of the company’s operating partnership, with the remaining interests held by a variety of limited partners, including the Oliver Carr Company, Clark Enterprises, Fred Schnider Investment Group, LLC and members of the company’s management team.
Including the recent acquisitions described below, Carr Properties owns, or has an interest in, a portfolio of 21 office buildings in the Washington, D.C. metropolitan area totaling 3.7 million square feet. The company’s properties include 901 K Street in Washington, D.C., 1701 Duke Street in Alexandria, VA and the Barlow Building in Chevy Chase, MD. The company is nearing completion of its 78% pre-leased trophy office building at 1700 New York Avenue and is developing 4500 East-West Highway in Bethesda, MD, which will be Bethesda’s first LEED® Platinum office building.
The company also announced the recent acquisition of the following assets:
One Liberty Center
Carr Properties acquired a 49.9% interest in One Liberty Center in Arlington, VA and is under contract to acquire a 49.9% interest in Two Liberty Center. One Liberty Center is a 13-story, Energy Star-rated 319,327-square-foot Class A office building developed in 2005. The building is 100% leased to the United States Government (“GSA”) on behalf of the Department of Defense. The acquisition of the interest was financed with a combination of a new loan from PNC Bank, issuance of the company’s operating partnership units and cash.
Two Liberty Center is a 9-story, Energy Star-rated 177,046-square-foot office building that was built in 2007. The building is also 100% leased to a roster of 10 tenants, including BAE Systems, Inc. and Strategic Analysis. Completion of the acquisition is subject to the existing lender’s approval of the new ownership structure.
2311 Wilson Boulevard
Carr Properties acquired a joint venture interest in an entity that will develop 2311 Wilson Boulevard, an approximately 180,000 square foot, 8-story trophy office building in Arlington, Virginia’s Courthouse neighborhood. 2311 Wilson Boulevard, located less than two blocks from the Courthouse Metro station (Orange line) is designed to LEED® Gold and ENERGY STAR certification standards. Carr Properties is partnering with architect and long-time Arlingtonian, Michael Foster, FAIA, who designed the building, which will feature a light blue solar glass curtain wall, ground floor retail, private balconies on upper floors, a rooftop terrace, childcare facility, conference center, fitness center and a 22,000 square foot public park at the rear of the building.