Equity Commonwealth’s $3.4 Billion Acquisition of Monmouth Real Estate

Stroock & Stroock & Lavan LLP advised Monmouth Real Estate Investment Corporation on the deal, while Fried, Frank, Harris, Shriver & Jacobson LLP advised Equity Commonwealth.

Monmouth Real Estate Investment Corporation (NYSE: MNR) announced its $3.4 billion acquisition by Equity Commonwealth (NYSE: EQC). The two companies entered into a definitive merger agreement on May 4, by which Equity Commonwealth will acquire Monmouth in an all-stock transaction that includes an assumption of debt. The combined company is expected to have a pro forma equity market capitalization of approximately $5.5 billion.

Equity Commonwealth President and Chief Executive Officer, David Helfand, and the company’s existing management team, will lead the post-merger company. Sam Zell will remain chairman of the board of trustees.

The board of trustees of Equity Commonwealth and the board of directors of Monmouth Real Estate have each unanimously approved the transaction, which is expected to close in the second half of 2021.

Equity Commonwealth is a Chicago-based, internally managed, and self-advised real estate investment trust with commercial office properties in the United States. Equity Commonwealth’s portfolio is comprised of four properties totaling 1.5 million square feet. Monmouth’s portfolio consists of 120 industrial properties totaling 24.5 million square feet.

Led by Corporate Practice Group Co-Chair Jeffrey S. Lowenthal (Picture), Stroock’s team includes: Chris Doyle, James Fang, Dan Fliman, Kris Hansen, Marni Isaacson, Michelle Jewett, Brian Kelly, Austin Lilling, Daniel Martinez, Marc Orlando, Marija Pecar, Patrick Petrocelli, Ida Phair, Ryan Rivera, Tess Sadler, Lauren Shandler, Albert Singer, Mitchell Snow, Jeff Uffner and Jon Ziefert.

Fried Frank acted as counsel to Equity Commonwealth with a team co-led by corporate partner Stuart A. Barr and tax partner Cameron N. Cosby, and included corporate partners Matthew V. Soran and Andrea Gede-Lange; executive compensation & ERISA partner Amy L. Blackman; litigation partners Scott B. Luftglass and Joshua D. Roth; real estate partner Suzanne deVries Decker; tax partner Alan S. Kaden; environmental special counsel Donna Mussio; corporate real estate special counsel Melissa A. Meyrowitz; tax special counsel Ryan L. Conley; corporate associates Hardin C. Cox III, P. Ryan Messier, and Katherine C. O’Neil; litigation associate Patrick Robichaud; real estate associates Thomas J. Bethany, Joseph W. Bielek, Michael Celler, Charles L. Roper Jr., and Tess E. Rowley; tax associate Laura D. Pond; and real estate law clerks Lauren Athans and Megan K. Misencik.

Involved fees earner: Stuart Barr – Fried Frank Harris Shriver & Jacobson; Thomas Bethany – Fried Frank Harris Shriver & Jacobson; Joseph Bielek – Fried Frank Harris Shriver & Jacobson; Amy Blackman – Fried Frank Harris Shriver & Jacobson; Michael Celler – Fried Frank Harris Shriver & Jacobson; Ryan Conley – Fried Frank Harris Shriver & Jacobson; Cameron Cosby – Fried Frank Harris Shriver & Jacobson; Hardin Cox III – Fried Frank Harris Shriver & Jacobson; Suzanne deVries Decker – Fried Frank Harris Shriver & Jacobson; Andrea Gede-Lange – Fried Frank Harris Shriver & Jacobson; Alan Kaden – Fried Frank Harris Shriver & Jacobson; Scott Luftglass – Fried Frank Harris Shriver & Jacobson; P. Ryan Messier – Fried Frank Harris Shriver & Jacobson; Melissa Meyrowitz – Fried Frank Harris Shriver & Jacobson; Donna Mussio – Fried Frank Harris Shriver & Jacobson; Katherine O’Neil – Fried Frank Harris Shriver & Jacobson; Laura Pond – Fried Frank Harris Shriver & Jacobson; Patrick Robichaud – Fried Frank Harris Shriver & Jacobson; Charles Roper Jr. – Fried Frank Harris Shriver & Jacobson; Joshua D. Roth – Fried Frank Harris Shriver & Jacobson; Tess Rowley – Fried Frank Harris Shriver & Jacobson; Matthew Soran – Fried Frank Harris Shriver & Jacobson; Christopher Doyle – Stroock & Stroock & Lavan LLP; Daniel Fliman – Stroock & Stroock & Lavan LLP; Kristopher Hansen – Stroock & Stroock & Lavan LLP; Marni Isaacson – Stroock & Stroock & Lavan LLP; Michelle Jewett – Stroock & Stroock & Lavan LLP; Brian Kelly – Stroock & Stroock & Lavan LLP; Austin Lilling – Stroock & Stroock & Lavan LLP; Jeffrey Lowenthal – Stroock & Stroock & Lavan LLP; Daniel Martinez – Stroock & Stroock & Lavan LLP; Marija Pecar – Stroock & Stroock & Lavan LLP; Patrick Petrocelli – Stroock & Stroock & Lavan LLP; Ida Phair – Stroock & Stroock & Lavan LLP; Ryan Rivera – Stroock & Stroock & Lavan LLP; Tess Sadler – Stroock & Stroock & Lavan LLP; Lauren Shandler – Stroock & Stroock & Lavan LLP; Albert Singer – Stroock & Stroock & Lavan LLP; Mitchell Snow – Stroock & Stroock & Lavan LLP; Jeffrey Uffner – Stroock & Stroock & Lavan LLP; Jon Ziefert – Stroock & Stroock & Lavan LLP;

Law Firms: Fried Frank Harris Shriver & Jacobson; Stroock & Stroock & Lavan LLP;

Clients: Equity Commonwealth; Monmouth Real Estate Investment Corporation;

Author: Martina Bellini