FOR THE FIFTH CONSECUTIVE YEAR, BENTALL KENNEDY, THROUGH ITS WORK ON BEHALF
OF MEPT, WAS AWARDED THE ENERGY STAR PARTNER OF THE YEAR AWARD BY THE U.S. ENVIRONMENTAL
PROTECTION AGENCY (EPA) IN MARCH. In addition, Bentall Kennedy received
the prestigious Sustained Excellence Award for the third year in a row. The
Sustained Excellence Award is given to a select number of organizations that
exhibit outstanding energy management performance and practices year after year,
and Bentall Kennedy has deployed industry-leading initiatives throughout the
IN JANUARY, MEPT RECEIVED TOTAL GROSS PROCEEDS OF $91.3 MILLION FOR THE
SALE OF TWO ASSETS IN SUBURBAN LOS ANGELES —CORPORATE POINTE AND DEVRY AT WEST
HILLS. MEPT targeted the 11-building, 987,428 square-foot office park in
the northwest San Fernando Valley for sale because it was not a long-term strategic
asset for the portfolio and had low occupancy. The sale enabled MEPT to reduce
its suburban office allocation while increasing overall occupancy of the MEPT
portfolio. After receiving interest from several buyers, MEPT proceeded with
an all cash offer from Brookfield Property Group, an alternative asset manager
with more than $150 billion in assets under management.
IN FEBRUARY, MEPT RECEIVED TOTAL GROSS PROCEEDS OF $59.5 MILLION FOR THE
DISPOSITION OF CABRILLO TECHNOLOGY CENTER IN SAN DIEGO. MEPT built the 285,585
square-foot office building in 1999 and the property performed well for the
Fund over the years. However, with deteriorating submarket fundamentals and
the upcoming lease expiration of the main tenant, MEPT anticipated future leasing
challenges and higher expenses in the coming years. As a result, MEPT marketed
the asset for sale and the property was purchased in an all-cash transaction
by a joint venture of IDS Real Estate Group and CalSTRS.
DURING THE QUARTER, MEPT SOLD THREE ASSETS IN SUBURBAN CHICAGO FOR TOTAL
GROSS PROCEEDS OF $23.5 MILLION. Totaling nearly 500,000 square feet and
notable for energy-efficient achievements, Greenspoint Office Building and Greenspoint
Office Building III were built by MEPT between 1989 and 1999 and Barrington
Pointe was acquired in 1994. The northwest suburban Chicago submarket where
these assets are located had been suffering from persistently high vacancy and
deteriorating market conditions which affected MEPT’s ability to re-lease vacant
space. As a result, MEPT targeted the three buildings for sale, consistent with
MEPT’s strategic goal of disposing of older office assets in suburban markets.
The assets were purchased by the Lincoln Property Company on behalf of the Teachers’
Retirement System of Illinois (TRS).
IN FEBRUARY, MEPT SOLD A LAND PARCEL IN THE WEST 70 COMMERCE CENTER BUSINESS
PARK IN ST. LOUIS FOR $3.4 MILLION. MEPT was approached by a prior tenant
in the West 70 Commerce Center industrial park to purchase the land at a price
above the Fund’s carrying value. The buyer is a Missouri-based manufacturer
who has a large presence in the area and previously acquired a building in the
business park from MEPT in 2005.