News

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11 Aug 2009

DLA Piper advises on two major retail real estate transactions

Press Release

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As the real estate markets continue to struggle to return to stability, DLA Piper served as lead counsel on two major transactions that closed in the past week.

In the first major US real estate portfolio transaction completed in the past two years, DLA Piper advised Global Retail Investors, LLC (GRI), a joint venture of the California Public Employees’ Retirement System and an affiliate of First Washington Realty, Inc., in its investment in a portfolio of 86 grocery-anchored shopping centers in the United States. The portfolio was valued at US$1.73 billion, and the transaction has received significant coverage in the trade press as the industry considers the significance of the deal.

In a second transaction, DLA Piper advised shopping mall owner Macerich Company in the sale of 49 percent interest in the Long Island, NY-based Queens Center, one of the top performing shopping centers in the United States.

“The complexity and diversity of these two deals showcase the versatility and capabilities of our national real estate practice. Both deals required numerous lawyers from different offices and practices across the country,” said Jay Epstien, partner and chair of the US Real Estate Practice Group. “Our market-leading real estate team has the experience and depth to advise clients throughout the life cycle of the most high-stakes commercial real estate ventures, both in the US and abroad.”

GRI was represented by partner Elliot Surkin and associate Primo Fontana from the firm’s Boston office, who led a multi-disciplinary team of lawyers that negotiated two purchase agreements and a three-party joint venture agreement, assisted with due diligence and obtained consents from securitized lenders. Under the terms of the acquisition, GRI will join an existing joint venture with an affiliate of Macquarie CountryWide Trust and an affiliate of US REIT Regency Centers Corporation.

DLA Piper partner Michael Hamilton from the firm’s Los Angeles office led a team of lawyers that advised and counseled Macerich in its transaction. In the joint venture for Queens Center, a subsidiary of Ontario Teachers Pension Plan Board will pay Macerich US$150 million in cash and will assume its pro-rata share of the mall’s remaining mortgage. As part of the deal, the DLA Piper team created two new private REITs, restructured the ownership of the center in a manner sensitive to tax and pension fund needs of the parties, negotiated two joint venture agreements, a management agreement and obtained Lender consents to the admission of the new investor.