The Real Estate Industry team advised Drawbridge Realty on the recapitalization of its approximately $1.7 billion portfolio of 95% leased, Class A office properties. In connection with the transaction, KKR and Drawbridge have established a new venture that will enable Drawbridge’s investment platform to source a pipeline of attractive investment opportunities for Global Atlantic. With committed long-term insurance capital from Global Atlantic, Drawbridge is positioned to accelerate its investments in high-quality, innovation-focused, net-leased office properties in growth markets nationwide with a goal to more than double the size of its portfolio over the next two to three years.
Drawbridge Realty is a San Francisco-based real estate investment company focused on acquiring, developing and managing commercial property investments in high growth technology and innovation driven markets across the U.S.
KKR’s insurance business Global Atlantic is recapitalizing the entirety of Drawbridge’s portfolio which comprises approximately 5.4 million square feet of Class A office assets in innovation-driven growth markets, currently concentrated across the West Coast and Sunbelt regions. The properties are over 95% leased to high-quality corporate tenants, predominantly under triple net leases. Under the terms of the agreement, Drawbridge will continue to oversee and manage the portfolio following the recapitalization.
The Goodwin team assisted Drawbridge in negotiating the new joint venture agreement with Global Atlantic, revising its existing joint venture relationships with KKR, representing Drawbridge in the negotiation of the transaction agreement with respect to the sale of the portfolio to the new joint venture, tax structuring on behalf of Drawbridge, and representing the seller and the new joint venture in connection with the defeasance and refinancing of the existing mortgage financing, which included the pay-off of all the existing loans and the negotiation of a new loan agreement with the lenders, affiliates of Global Atlantic, on behalf of the new joint venture.
The Goodwin Real Estate Industry and Tax teams included David Phelps, Hilary Fey, Jamie Crolle, Allyson McCain, Tina Kim, Talea Stashin, and Adam Kopald (Real Estate and Financing); Mark Schonberger and Farnell Morisset (Corporate); Jeremy Simon and Ross Gillman (Opinions); and Romina Weiss and Matt Dunay (Tax).
For more details, read the press release.