Trust News - 2013

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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 MEPT portfolio.

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.