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Mintz Supports Cradles to Crayons’ Bright Future in Cradles’ Acquisition of its “Forever Home”

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Industry: Real Estate

Key Facts

  • Cradles to Crayons is a nonprofit organization dedicated to serving children and families in need by providing essential items (clothing, shoes, winter coats, and filled backpacks)
  • Cradles to Crayons has locations in Boston, Philadelphia, Chicago, and New York
  • Mintz recently helped Cradles complete the acquisition of its new headquarters in Newton, Massachusetts

The Situation

Hoping to establish a new headquarters by 2020, Cradles to Crayons founder and CEO Lynn Margherio began searching in early 2017 for a property that Cradles to Crayons could own and operate. The organization wanted a facility that would enable it to augment its programs and enhance its innovative practices to serve children and families in need. Mintz was asked to represent Cradles to Crayons in connection with the acquisition, evaluate the zoning and permitting of the site, and ultimately handle the tax-exempt bond financing.

The Approach

Through his relationship with the Chairman of the Cradles Board, Real Estate Member Eric J. Freeman was introduced to Lynn Margherio and Cradles CFO Karen Gallahue. Eric toured Cradles’ Brighton facility and met with Lynn and Karen regularly at the inception of the transaction, at which point Mintz partnered with Cradles to assist with the acquisition of Cradles’ new headquarters. The Mintz team handled substantially all of the legal real estate matters including review of Cradles’ brokerage agreements with its broker; the negotiation of the purchase and sale agreement with the seller; the title, survey, and zoning due diligence; permitting evaluation of the site for potential expansion; the closing of the acquisition; and tax-exempt bond financing. Associate Phil Field and Legal Specialist Diana Crockett guided Cradles to Crayons through the complexities of the acquisition, zoning, permitting, and closing issues, consulting regularly with Member Rebecca Lee.

When Cradles elected to seek tax-exempt bond financing, Mintz Member Meghan Burke joined the Mintz team to advise Cradles on the intricacies of public financing and to negotiate the loan closing.

At the conclusion of the transaction, Lynn Margherio expressed her appreciation to Mintz: “You really opened our eyes as to what was possible and with your expertise and generosity, you have given us opportunities that we only dreamed about. We would not be here if not for Mintz. Thank you from the bottom of our hearts!”

The Outcome

With the support of the Mintz team, Cradles to Crayons closed on the acquisition of its “forever home” in Newton, Massachusetts in January 2019.

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