MEPT Recapitalizes in the Capital
- Dec 23, 2015
Multi-Employer Property Trust has recapitalized Patriots Plaza, a nearly 1 million-square-foot office complex in Washington, D.C., to the tune of $237 million. MEPT formed a joint venture with Ärzteversorgung Westfalen-Lippe, selling the German pension fund a significant stake in the three-tower asset.
MEPT has been with Patriots Plaza from the start. The real estate equity fund developed the office complex with Trammell Crow in three phases, spending more than $250 million to complete the project. Patriots Plaza I, a 280,000-square-foot tower at 395 E St. SW, opened in 2005. Plaza II and III, offering 320,000 and 380,000 square feet at 375 and 355 E St., respectively, debuted in 2009. The property, which boasts extensive security features and LEED Gold certification, is 90 percent leased, with a host of government offices calling it home.
The joint venture’s $237 million in funds came in the form of 10-year, fixed-rate, first mortgage loan through Allianz Real Estate of America.
“MEPT is pleased to be commencing a strategic partnership with ÄVWL, a well-capitalized and sophisticated global investor, and at the same time, consistent with MEPT’s strategic objectives, further optimizing its Washington, D.C. area allocation and providing for redeployment of the sale proceeds,” David Antonelli, executive vice president and MEPT portfolio manager at Bentall Kennedy (U.S.) L.P., MEPT’s real estate advisor, said in a prepared statement. Eastdil represented MEPT in the sale of the Patriots Plaza stake and ÄVWL relied on the assistance of Genesis International, which will work alongside commercial real estate services firm CBRE on the leasing and management of the property.
MEPT has also done its share of buying this year. In April, MEPT and Bentall Kennedy announced the acquisition of the 504,400-square-foot office property at 757 Third Ave. in Manhattan for $ 356.7 million, and September brought news of MEPT and Trammell Crow’s $58.5 million purchase of an 8-acre development site in San Jose, Calif.