In March, MEPT acquired Two Rector Street, a 473,975 square foot office building in the Financial District of Manhattan for a gross price and redevelopment commitment of $323.8 million. The Art Deco aesthetics and unique layout make Two Rector Street a truly unique 26-story office tower in one of the most renowned and resurgent office submarkets in the world. The Financial District, and more specifically the World Trade Center area, has re-emerged as a 24/7, highly amenitized live/work/play environment. In a joint venture with Cove Property Group, MEPT intends to renovate and reposition the building as a Class A office property with new elevators, mechanical systems and a redesigned lobby in order to attract the highest-quality tenancy. MEPT expects Two Rector to cater to technology, advertising, media and information firms as well as traditional financial services tenants. Further, this asset will be well positioned to benefit from the completion of the World Trade Center transit hub and a flow of tenants from the Midtown and Midtown South submarkets. This acquisition brings MEPT’s total investment in the New York market to over $1.5 billion with more than 2.1 million square feet. Two Rector Street aligns well with the Fund’s focus on responsible investment in transit-oriented locations serving knowledge industry tenants.
In the first quarter, MEPT committed $77 million to finance the construction of 9th & Thomas, a planned 12-story, 165,000 square foot boutique, multi-tenant office building in Seattle. Through a shared-appreciation mortgage, MEPT will help finance the construction and participate in the cash flow and appreciation of the asset once it is stabilized. The project is a legacy development of the Redman family which has owned the 9th & Thomas parcel in the South Lake Union submarket for more than 70 years. In 1944, the site was developed as the original home of Sellen Construction. Today, Sellen Construction is led by Scott Redman and has become the Pacific Northwest’s largest privately owned and managed union-signatory, construction company. Sellen will develop the project that is designed to include flexible floor plates, outdoor decks and gardens, high-end amenities and a first floor configured as a community "living room" surrounded by retail. The project will seek LEED® Gold certification. This investment is consistent with MEPT’s plan to invest in urban office projects and will complement the Fund’s other nearby investment in South Lake Union.