MetLife CRE Investments Exceed $91B Market Value

WHIPPANY, NJ—MetLife Investment Management, MetLife‘s, institutional asset management business, reached $91.2 billion in global gross market value of commercial real estate assets under management in 2018, a record for MIM. MIM’s real estate platform, which includes debt and equity origination and asset management capabilities across 11 regional offices, completed $15.1 billion in new debt and equity transactions in 2018.

“We are proud of what our platform has achieved across real estate equity and commercial mortgage investments over the last year, and we look forward to serving our clients and growing our third-party asset management business in 2019,” says Robert Merck, senior managing director and global head of real estate and agriculture for MetLife Investment Management.

MIM’s commercial mortgage team delivered another strong year, originating more than $12.9 billion in commercial mortgage loans in an increasingly competitive market. These loans continue to provide institutional investors with strong relative value over alternative fixed income investments. This origination activity increased the gross market value of commercial mortgage loan assets under management to $63.2 billion.

On the real estate equity side, MIM continued to selectively acquire assets in markets that enhance its expanding portfolio, while realizing the value of certain mid- to long-term investments with opportunistic sales through the year. In 2018, MIM committed to purchase 30 properties valued at more than $2.2 billion in gross market value, bringing gross market value of real estate equity assets under management to $28.0 billion. The company also extended its highly successful build-to-core track record, highlighted by the completion and subsequent full- property lease of Park Tower, San Francisco, CA.

MIM also continued to expand its international real estate portfolio in 2018, significantly increasing gross market value of commercial real estate assets under management in several key global markets. Commercial mortgage production in the United Kingdom was $959 million in GBP debt. In Japan, MIM produced $560 million in Yen debt and real estate equity transactions. MIM also expanded its presence in Australia, originating 11 debt transactions for $630 million in AUD, and continued to grow its Latin American presence, increasing mortgage loan production in Mexico and Chile.

Commercial Mortgage Loan Production

MIM originated several significant commercial mortgage loan transactions in 2018, including the following:

• Two Grand Central Tower (New York, NY) – $260 million office property first mortgage;
• Starwood Property Trust Warehouse Facility (multiple locations) – $250 million revolving line of credit;
• 1111 Third and Second & Spring (Seattle, WA) – $216 million office property first mortgage;
• Modera Avenir Place (Vienna, VA) – $156 million apartment and retail property first mortgage; and
• Roermond Designer Outlet Centre (Roermond, Netherlands) – $129 million retail center first

Real Estate Equity Investments

MIM’s real estate equity portfolio includes investments in office, apartment, retail, industrial and hotel properties. Noteworthy transactions that closed in 2018, included:

• Southlands Town Center (Aurora, CO) – 1.7 million square foot lifestyle center;
• 249 Business Park (Houston, TX) – 820,000 square foot industrial facility;
• Hoffman Town Center (Alexandria, VA) – Mixed-use development consisting of more than 560 apartment units and ground level retail; and
• 89 A Street (Needham, MA) – 248,000 square foot office