Strategic recapitalization of ownership structure positions the company to accelerate its next chapter of office and residential investment supported by Alony Hetz’s ongoing partnership.
Carr Properties (“Carr”), a leading owner, operator, and developer of premium quality office and residential properties, today announced a strategic recapitalization of its ownership structure with investment partners Alony Hetz Properties & Investments Ltd [TASE:ALHE] (“Alony Hetz”) , Clal Insurance Enterprises Holdings Ltd. (and its affiliates) [TASE:CLIS] (“Clal”) and institutional investors advised by J.P. Morgan Asset Management (“J.P. Morgan”). J.P. Morgan has redeemed its equity stake in the company following a strategic plan developed in partnership with Carr. In conjunction with the redemption, long-term investor Alony Hetz have made a significant new capital investment, underscoring its continued confidence in Carr’s leadership, platform and go-forward strategy.
As part of the transition, Carr will transfer ownership of three DC-area office assets—Signal House, 1875 K Street, and 1701 Duke Street to J.P. Morgan, as well as other considerations, in exchange for its 36% ownership interest in Carr. Carr will continue to operate all three assets, ensuring seamless operations and maintaining its signature Carr Experience for building customers.
Simultaneously, Alony Hetz, one of Israel’s largest real-estate investment holding companies, has made today an additional $100 million equity investment in Carr and reaffirmed its long-term support for the company’s go-forward business plan. As a result of the transaction, Alony Hetz will increase its ownership stake from 48% to 79%. Clal and various minority owners retain the remainder of the ownership interests. This realignment marks a significant milestone in Carr’s evolution and will anchor the next phase of the company’s growth.
“Through our investment strategy—focused on repurposing existing office buildings into trophy-quality office and redeveloping obsolete office assets into new, high-end multifamily communities or new trophy quality office buildings —we are entering an exciting new chapter for Carr,” said Oliver Carr, CEO of Carr Properties. “We look forward to deepening our relationship with another trusted and valued partner, Alony Hetz. Their investment enables us to accelerate our growth strategy, advance new development and acquisition opportunities and continue delivering high-quality, thoughtful spaces that meet the evolving needs of our customers and communities. With a focused vision for long term growth and an extraordinary team, we’re well positioned to lead with confidence and conviction in our fourth decade of business.”
Commenting on the transaction, Nathan Hetz, Founder and CEO of Alony Hetz & Chairman of Carr Properties, said, “We are proud of what we have accomplished with Oliver and his team at Carr Properties over the last 12 years. This includes the development of such iconic office properties as Midtown Center in Washington, D.C. and One Congress in Boston, Massachusetts, as well as, The Wilson and The Elm, an award-winning office and residential mixed-use development in Bethesda, Maryland. As our primary vehicle for investment in the United States, we look forward to continuing to support the company and its strategic plan for value creation.”
Carr is strategically positioned to capitalize on transformative new investment opportunities across key markets in both the office and multifamily sectors. The company’s current development pipeline includes a growing focus on the residential sector, with two multifamily projects totaling 546 homes already underway.