MEPT Invests $250M in Boston's South End, Seaport Markets

BOSTON—The Multi-Employer Property Trust real estate fund has acquired eight medical office buildings here as well as a parking garage in deals valued at $250 million.

The Bethesda, MD-based MEPT and its real estate advisor Bentall Kennedy (U.S.) Limited Partnership, headquartered in Seattle, announced the transactions that involved more than 650,000 square feet of properties that the companies state offer redevelopment and development opportunities.

One portfolio acquired by MEPT is adjacent to the Boston Medical Center and is comprised of two, fully leased, medical office buildings, three properties intended for redevelopment and two acres of land for potential multi-family development. This portfolio was acquired as part of a joint venture with Boston-based Leggat McCall Properties.

The portfolio adjacent to the Boston Medical Center include 660 and 720 Harrison Ave., 575 Albany, 100 East Canton, and 123 East Dedham. Bentall Kennedy plans to vet several options for the fund's development and redevelopment opportunities, including new apartment construction, the company states.

A second portfolio contains three well-leased office buildings (313 Congress St., 330 Congress St., and 300 A St.) totaling 220,993 square feet in Boston's Fort Point Channel submarket of the Seaport District. Additionally, in the Fort Point Channel submarket, MEPT acquired the Necco Garage, a six-level, 588-space parking facility.

“We have been actively pursuing investments in the Boston area for some time. Boston has very compelling market fundamentals as a result of its diverse workforce and strong economic growth, driven by the city's education, healthcare and technology sectors,” states David Antonelli, executive vice president and MEPT portfolio manager at Bentall Kennedy. “The assets acquired on behalf of MEPT provide a balance of both stabilized, cash-flowing components, and value-add development opportunities which position the fund to benefit from further economic expansion.”

The Necco Garage at 10 Necco St. is located at the gateway to the Seaport District and is only a quarter mile from I-93 and I-95. The parking facility is located next to 300 A Street; one of the three buildings in the Fort Point Channel portfolio.

“These acquisitions advance several aspects of the core strategy of the fund,” Antonelli says. “This strategy includes increasing investment in primary markets, acquiring office properties in urban locations within knowledge industries, and developing build-to-core projects in innovation-driven markets. Furthermore, the assets are a great fit with the MEPT portfolio and we are pleased that the fund will significantly increase its investment in Boston.”

MEPT, a $7-billion, open-end commingled real estate equity fund, is owned by more than 320 institutional investors, including 14 multi-employer and public employee plans in the Boston area. The fund is managed by NewTower Trust Co. of Bethesda, MD.