Recent Study Finds Total Economic Impacts Attributed to MEPT Investments Equates to $18.1 billion Over Last 34 Years

MEPT Receives Top Ranking in GRESB Benchmark

During the third quarter, MEPT committed $7.0 million toward pre-development costs associated with Capitol Hill Station in Seattle.
Capitol Hill Station, located at the site of the Capitol Hill Link Light Rail station, is anticipated to be a LEED Platinum, 332-unit multi-family asset with 33,024 square feet of retail space. Capitol Hill Station is structured as a joint venture with Portland, Oregon-based Gerding Edlen Development, and the transaction is aligned with the Fund’s focus on responsible investment in transit-oriented locations within knowledge-driven Primary Markets.…



JV Closes on Acquisition of Two Rector Street
Multi-Employer Property Trust (MEPT), advised by Bentall Kennedy U.S. LP, in a joint-venture with Cove Property Group LLC have acquired the office building at 2 Rector St. in New York, NY from Kushner Companies and CIM Group LP…

First look: ‘Transformative’ 710-unit residential project planned in South End
Leggat McCall Properties on Monday submitted an expanded project notification form to the Boston Redevelopment Authority that highlights in greater detail the firm’s plans for a "transformative, contemporary development" spanning a full city block in the South End. The project team has named the project the "Harrison Albany Block" and proposed 710 residential units, a 40,100-square-foot office and 14,100 square feet of retail space for a 3.1-acre site in the South End formerly owned by Boston Medical Center…


Latest look at Trammell Crow’s updated Diridon project
A lot has changed in the years since downtown San Jose’s last office tower was built about six years ago. Tech&rsquos influence on workspace design has completely transformed the look and feel of new projects. Wide-open floors are in. So is proximity to housing, services and transit…



 

Strategy

MEPT's investment strategy is to acquire top-quality, income-producing assets through development, rehabilitation, or purchase and repositioning of undervalued assets. Key tenets of the strategy include:

Stable Current Income
As a core fund, emphasis on a stable income stream is the primary driver of the overall portfolio strategy. MEPT's large operating portfolio generates significant and consistent cash flow. The Fund's active asset management approach focuses on:

  • maintaining a stable, and relatively high, occupancy rate;
  • maximizing property-level efficiency and expense savings; and
  • mitigating risk related to lease rollover and tenant delinquencies.

Diversification
MEPT maintains a portfolio diversified by property type, location, tenant type and size of asset.

  • Focused on the traditional core property types, the investment strategy targets major markets with attractive long-term demand/supply characteristics and high barriers to entry.
  • Strategy execution changes based upon market conditions, real estate cycle, and investment opportunities.

Portfolio Construction
MEPT has grown its portfolio by acquiring existing core assets at or below replacement cost, or through new construction, redevelopment, rehabilitation or adaptive re-use. At the same time, MEPT maintains an active disposition program and markets assets for sale when the downside risk outweighs the long-term potential of the asset.

  • Acquiring existing assets at or below replacement cost allows MEPT to compete effectively on price (lease rates) for a deep and varied pool of credit tenants.
  • Maintaining a pipeline of high-quality new construction projects is driven by market demand for new space but is rooted in the premise that newly constructed, modern space traditionally earns higher rents and steadier demand from credit tenants. Development and other value-add investments are generally limited to 20% of the Fund portfolio.
  • MEPT identifies assets to sell based on criteria directly related to the asset's potential to contribute future performance for MEPT.

Liquidity
As an open-end fund, and consistent with the MEPT's 34-year track record, liquidity is a key component of the portfolio strategy, and the Fund's track record on liquidity is superior in the U.S. core open-end fund universe. MEPT's cash management policy has two fundamental objectives:

  • Meet the Fund's commitments in managing a multi-billion dollar real estate portfolio, including acquisitions, property operations and expenses, and debt service; and
  • Maintain sufficient cash to honor investor withdrawal requests.

Leverage

  • MEPT typically makes 100% equity investments (unleveraged), and MEPT's use of debt is considered to be moderate within core real estate.
  • The Fund limits long-term leverage to 30% of gross asset value. The Fund's leverage policy is structured to mitigate risks related to interest rate volatility, maturity exposure, loan covenant restrictions and refinancing.

Responsible Property Investing
RPI provides the framework for MEPT to incorporate environmentally and socially responsible governance practices into prudently managing real estate investments.

  • The Fund only develops buildings that are designed to be U.S. Green Building Council's® Leadership in Energy and Environmental Design® (LEED) Silver-certified or higher, and emphasizes energy-efficient, high-performance property operations in its existing portfolio.
  • MEPT maintains an unwavering commitment to fair labor practices by using 100% union labor and signatory contractors to ensure that prevailing wages and benefits are paid to foster economic health and growth in the communities where the Fund invests.
  • The Fund upholds the highest degree of fiduciary standards and unparalleled transparency and communication with its investors.



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