MEPT Takes Multi-State Assets for $192M

WASHINGTON, DC-Multi-Employer Property Trust is clearly an investor that does not shun many asset classes. Does it have the currently ill favored office in its portfolio? Check. The much beloved, depending on the location retail? Yes. The ever hot multifamily? Ditto. Industrial? Ibid. "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 US cities," says David Antonelli, EVP and MEPT portfolio manager at Bentall Kennedy, real estate advisor to MEPT, in a prepared statement.

If the mission statement of the locally-based $5.6 billion, open-end commingled real estate equity fund were not enough, a recent acquisition spree by the fund also makes clear it is open to all flavors of asset categories. It just snapped up assets in Boston, Denver, New Jersey and Philadelphia in the multifamily, industrial and retail categories, respectively. These assets traded for a total of $192 million. Separately, the company acquired a 218-unit apartment community it acquired in Dallas last month for an undisclosed amount.

In Denver MEPT purchased The Metro, a 415-unit multifamily property, for $90.8 million on an all cash basis from CBRE Capital Advisors. The property is 93% leased and located in the city's LoDo neighborhood. MEPT clearly has a soft spot for this asset class. This acquisition increases MEPT's ownership to over 9,000 units across the U.S. The 93% leased, 5.6-acre property is located in the LoDo neighborhood. The fund is planning a capital improvement program for the apartment community.

In the Southern New Jersey-Philadelphia metro market MEPT acquired an industrial site on an all cash basis, also in November. The property, located at 1150 Commerce Blvd., is a 599,500 square foot bulk building on a 60.4-acre lot, and is fully-leased to Kimberly-Clark Corp. The Silver LEED-certified building is in LogistiCenter at Logan, a 1,000-acre bulk distribution park in Logan Township, NJ. It is expandable by approximately 192,500 rentable square feet.

Finally, in Boston MEPT acquired the Woburn Mall in September for $62.6 million from KGI. The 276,205-square foot retail center was MEPT's first retail investment in the area. Built in 1976 and renovated in 2006, it is 90% leased.

Other deals recently inked by MEPT include a multifamily acquisition in Dallas last month and a $200 office refinance in Jersey City. It acquired Mondrian Cityplace, a 218-unit, 20-story apartment community that is 98% leased, from USAA Real Estate Co. In August, the company refinanced for $200 million Newport Tower, the 1.1-million-square-foot skyline icon in Jersey City, NJ, that was traded last year in what was said to be the biggest office deal ever in the state.