MEPT Announces the Acquisition of Three High-Quality Assets for a Total of $192 Million
WASHINGTON, Nov. 16, 2012 /PRNewswire/ -- Multi-Employer Property Trust (MEPT) (www.mept.com) and its real estate advisor, Bentall Kennedy, are pleased to announce the Fund's recent purchase of three institutional-quality assets in Boston, Denver and Philadelphia for a total investment of $192 million. These transactions closed in the past three months.
"On behalf of MEPT, we have sought to acquire well-leased, well-located assets in major markets across the U.S. and these three assets fit well with the investment strategy," noted David Antonelli, Executive Vice President and MEPT Portfolio Manager at Bentall Kennedy, real estate advisor to MEPT. "Since 2009, the Fund has acquired existing assets and made commitments to development projects totaling more than $2.1 billion in investment in order to achieve strategic goals of diversifying the portfolio and increasing MEPT's presence in major U.S. cities."
In November, MEPT, a $5.6 billion open-end commingled real estate equity fund, purchased The Metro, a 415-unit multi-family property in Denver for $90.8 million on an all cash basis from CBRE Capital Advisors. The acquisition of The Metro increases MEPT's ownership to over 9,000 apartment units across the U.S. The 93% leased, 5.6-acre property is located in the LoDo neighborhood, with proximity to major employers in the city center, the Union Station light rail, commuter rail and bus transit hub, abundance of nightlife, and a wide variety of recreational opportunities. Additionally, The Metro offers residents a recently-updated club room, a business center, fitness center and 655 parking spaces – amenities that appeal to the Echo Boom demographic (the 19-34 year olds entering the workforce) in the area. All units have nine-foot ceilings, covered patios and balconies, walk-in closets, and designer cabinetry. In order to make the property even more appealing to prospective residents, MEPT has planned a capital renovation program that will include upgrades to common areas and enhanced unit finishes. Bentall Kennedy plans to identify efficiency gains and research the feasibility of adding sustainable features to the property.
MEPT purchased 1150 Commerce Boulevard in the Southern New Jersey – Philadelphia metro market for $36.1 million, on an all cash basis in early November. The property, a 599,500 square foot bulk industrial building situated on a 60.4 acre lot, is fully-leased to Kimberly-Clark Corporation. The property is located in LogistiCenter at Logan, a 1,000-acre bulk distribution park in Logan Township, NJ which has proximity to Interstates 295 and 95 as well as the New Jersey Turnpike. Built in 2009, the USGBC® LEED® Silver-certified building is the newest facility in LogistiCenter, has state-of-the-art construction and features, and is expandable by approximately 192,500 rentable square feet. The property's highly functional and flexible specifications include cross-dock configuration with full circulation, 32' clear height, expansive column spacing, and ample loading with best-in-class dock packages. CBRE's National Partners represented the seller.
MEPT acquired the Woburn Mall in the Boston market in September for $62.6 million from KGI. While MEPT has invested in the Boston area for over 20 years, the purchase of the Woburn Mall is MEPT's first retail investment in the Boston metropolitan area. The Woburn Mall, a 276,205 square-foot retail center originally built in 1976, and most recently renovated in 2006, is approximately 90% leased to a desirable tenant mix of necessity-based and discount retailers, complemented by grocery and specialty shops. The property has a prime location, with easy access and high visibility to both Interstates 95 and 93. The center draws shoppers from nearby high-density residential neighborhoods, as well as the large population of more than 65,000 office workers in a three-mile radius. On behalf of MEPT, Bentall Kennedy will be evaluating opportunities to improve both the interior and exterior of the mall. Boston-based Novaya Ventures assisted in the acquisition effort and will continue to play a role in day-to-day operations.
"We are pleased with our transaction activity to-date for MEPT. These assets are well-leased and generating stable income and at the same time, offer the opportunity for the Fund to make improvements or expansions as tenant demand warrants," stated Paul Boneham, Executive Vice President, Head of U.S. Transactions, Bentall Kennedy. "For MEPT, we will continue to focus on acquiring multi-family assets in urban markets serving the Echo-Boom generation, grocery-anchored retail centers in established neighborhoods, well-leased, modern distribution facilities, and high-quality CBD office properties."
Multi-Employer Property Trust (MEPT) is a $5.6 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) and the top-ranked diversified fund in the U.S. for sustainability and environmental performance by the Global Real Estate Sustainability Benchmark (GRESB). Please visit www.mept.com to learn more.
MEPT is managed by NewTower Company which serves as trustee, fiduciary and investment manager. Bentall Kennedy (U.S.) Limited Partnership (Bentall Kennedy) serves as the real estate investment advisor. Landon Butler & Company, LP® provides investor relations services.
About Bentall Kennedy
Bentall Kennedy is one of North America's largest real estate investment advisors and one of its foremost providers of real estate services. Bentall Kennedy serves the interests of more than 500 clients across 140 million square feet of office, retail, industrial, residential and hotel properties totaling $29.4 billion throughout North America. Bentall Kennedy has a 100-year track record of delivering superior returns and a reputation for integrity, innovation and creating value. Bentall Kennedy is a member of UN PRI and is a recognized global leader in Responsible Property Investing. Bentall Kennedy includes Bentall Kennedy (Canada) Limited Partnership and Bentall Kennedy (U.S.) Limited Partnership. For more information, please visit www.bentallkennedy.com.
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