WASHINGTON, Sept. 28, 2011 /PRNewswire/ -- Multi-Employer Property Trust (MEPT) (www.mept.com) today announced the purchase of 200 West Madison, a 928,040 square foot Class A office building in Chicago's West Loop neighborhood, for $217.5 million from a joint venture that includes Tishman Speyer, Pearlmark Real Estate Advisors LLC and a major U.S. pension plan. Paul Barile and Janice Sellis of Transwestern's Investment Services Group represented MEPT in the transaction.
MEPT, a $5.1 billion open-end commingled real estate equity fund, acquired the 88% leased office building through a limited partnership subsidiary in an all-cash transaction. Located at the intersection of Madison and Wells Streets, the 45-story building has excellent access to public transportation, is a short walk to restaurants, shopping and hotels, has an award winning lobby and building renovations, and has earned Leadership in Energy & Environmental Design (LEED) Silver certification from the U.S. Green Building Council.
"The vacancy rate in the West Loop has fallen over the last several quarters and demand for office space has been led by companies relocating to and expanding in downtown Chicago. We think this trend will continue and benefit office buildings such as 200 West Madison in Chicago's central business district," noted David Antonelli, Executive Vice President and MEPT Portfolio Manager at Bentall Kennedy, real estate advisor to MEPT. "Furthermore, 200 West Madison is a great fit for MEPT's portfolio especially because of the building's urban, infill location and its environmentally-efficient property operations."
In the heart of Chicago's financial and government districts, the building is leased to a diverse base of approximately 70 tenants including law firms, financial services groups, a design school and other service businesses. As a long-term owner, MEPT plans to solidify the building's competitive position by completing certain capital improvements and modernizations and attracting high-quality tenants to the building through a program of active asset management and marketing.
"On behalf of MEPT, we are actively looking to acquire well-leased, well-located assets in major markets across the U.S. and 200 West Madison certainly fits that profile," stated Paul Boneham, Executive Vice President, Head of U.S. Transactions, Bentall Kennedy. "Our focus continues to be on acquiring multi-family assets in urban markets serving the Echo-Boom generation, grocery-anchored retail centers in established neighborhoods, and high-quality CBD office properties."
Multi-Employer Property Trust (MEPT) is a $5.1 billion, open-end commingled real estate equity fund that invests in a diversified portfolio of institutional-quality real estate assets in 30 major metropolitan markets across the U.S. Founded in 1982, MEPT is owned by more than 350 multi-employer, public employee and corporate pension plans. MEPT is recognized as a pioneer in Responsible Property Investing (RPI) and is one of the largest U.S. real estate funds that is signatory to the UN Principals for Responsible Investment (UN PRI). Please visit www.mept.com to learn more.
Pamela Silberman, SVP, Landon Butler & Company, MEPT Investor Relations/Media
Forward looking statements are subject to change due to market conditions or investment strategy execution, and past performance is not indicative of future results. Any assumptions should not be construed to be indicative of the actual events that will occur.
SOURCE Multi-Employer Property Trust