Press Releases

Pillsbury Winthrop Shaw Pittman Represents The Mark Winkler Company in $2.3 billion Disposition of Major Commercial and Residential Real Estate Portfolio

16-Mar-2006

Sales represent largest single private property disposition in the Washington DC metro area

WASHINGTON – In what may be the largest ever private disposition of real estate assets in the Washington DC metro area, law firm Pillsbury Winthrop Shaw Pittman LLP represented The Mark Winkler Company and its affiliates in the sale of commercial and residential properties valued at approximately $2.3 billion.

The Winkler portfolio consisted of more than 12 million square feet of prime commercial and residential projects and included over $2 billion in assets throughout the Greater Washington market. The company was founded in the 1940s and through the years established itself as a leader in real estate leasing, development and management.

“This complex transaction involving multiple purchasers and dozens of different sellers came together incredibly smoothly and swiftly. We would say it set a new standard for legal representation in the market,” says John Engel, the senior partner with Pillsbury, who led the transaction team along with William Horton and Marjorie Fisher. “As one of the largest single portfolio transactions in the Washington DC market, this deal required the involvement of a number of attorneys from many different disciplines. Our firm’s deep bench enabled us to orchestrate an outcome that was beneficial to all parties involved while accomplishing this in the short period of time our client desired.”

“Pillsbury Winthrop Shaw Pittman has been a critical part of our success for over 20 years. They were often a part of our business planning, as they were able to share with us their observations regarding important business and real estate issues and trends derived from their national practice,” says Randal B. Kell, Chief Executive Officer of The Mark Winkler Company. “Although we had never before sold any project that we had developed for our own account, it came as no surprise when we reached the decision to liquidate our real estate portfolios and wind up our long-standing real estate development and investment business that the lawyers at Pillsbury rolled up their sleeves and jumped right in. The firm’s attorneys helped us select and interview investment bankers, took the lead in negotiating the deal structures for the sale of the real estate and corporate assets and then finalized all of these deals in a long and extremely complex series of the smoothest and best organized closings that I have ever been a part of. This transaction is an amazing testament to the skills and hard work of John Engel and his team, and it is just a great way for us to exit the business.”

Goldman Sachs acted as financial advisor for the commercial portfolio and CB Richard Ellis acted as financial advisor for the residential/retail portfolio. Both firms have received high praise from The Mark Winkler Company for their performance in managing a complex bidding process involving dozens of potential buyers.

The commercial portfolio represents highly desirable office properties and development sites located in four primary markets within the Greater Washington, DC area. Among the highest-profile properties included are 1801 and 1875 Pennsylvania Avenue, NW, two prime office buildings just two blocks west of the White House and directly across from the World Bank Headquarters and the IMF Headquarters. The law firm of Wilmer Cutler Pickering Hale and Dorr currently occupies a majority of these properties under a long-term lease. The portfolio is being sold to several different purchasers in a number of closings. To date, nearly all of the properties have closed, with the remaining office buildings and one residential project under contract and expected to close by the end of the second quarter.

Duke Realty (NYSE: DRE) the Indianapolis-based REIT, has purchased the bulk of Winkler’s commercial properties and undeveloped land and commercial management operations, which includes about 2.3 million square feet of commercial space in Northern Virginia, and has several additional buildings under contract.  

The majority of the residential portfolio, including nine apartment home communities containing 3,726 units in Northern Virginia and a shopping center called The Shops at Mark Center in Alexandria, was acquired by affiliates of the JBG Companies of Chevy Chase, MD. The JBG Companies also acquired the Reston International Center office building.

A team of 25 attorneys in the Washington, DC office of Pillsbury represented The Mark Winkler Company and its affiliates in these transactions. Given the size and complexity of the deal, numerous practice areas contributed to the transaction including real estate, corporate & securities, tax, litigation, and executive compensation. Among the participating attorneys were:

Also involved from Pillsbury were Elizabeth McMahon, William Nye, Brad Noojin, Jamie Gross, Deborah Aschaffenburg, Cory Bingaman, and Torcelia Davis. 

Pillsbury Winthrop Shaw Pittman LLP is an international law firm with over 900 attorneys in 16 offices, including San Francisco, New York, Washington, DC, Los Angeles and London, with more than 100 real estate lawyers representing clients nationally and internationally. In business for more than 130 years, Pillsbury’s practice focuses on real estate, capital markets and finance, energy, global sourcing, litigation, technology, life sciences and communications. For more information, please visit www.pillsburylaw.com.  

Contacts:

John Garger
212.721.3595
jgargernyc@aol.com

Allan Ripp
212.721.7468
arippnyc@aol.com