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  DURING THE QUARTER, MEPT EXECUTED A FORWARD COMMITMENT OF $120 MILLION TO PURCHASE, UPON COMPLETION IN 2011, ONE FRANKLIN-LE MERIDIEN,
a planned 250-room, four-star hotel property in Boston. The hotel will be part of a 1.4 million square foot, mixed-use development that will incorporate the former historic Filenes Basement clothing store into space for retail, hotel, residential, and office.


IN SEPTEMBER, MEPT PURCHASED AN ADDITIONAL OWNERSHIP INTEREST IN ARBORETUM LAKES WEST FOR $1.7 MILLION.
 The purchase of the outstanding 5 percent interest brings the total MEPT ownership to 100 percent. Arboretum Lakes West is a Class A, 190,361 square foot, mid-rise suburban office building located in Chicago.


Procter & Gamble Co.
Procter & Gamble Co. - maker of Tide laundry detergent, Charmin bathroom tissue and Crest toothpaste - leased 1.2 million square feet of space at Gateway Commerce Center in Edwardsville. P&G has moved into nearly 580,000 square feet at the Gateway Commerce Center's Westway III building at 3101 Westway Drive under the $17 million deal.

Symantec Expands in Downtown San Francisco
Firm Takes Additional 17,000 SF at 303 2nd Street Symantec leased 16,966 square feet on the fifth and eighth floors for six years at 303 2nd St. in San Francisco, where it already occupies 38,734 square feet.

Ozburn-Hessey Expands Operations in Dallas
Ozburn-Hessey Logistics signed a 15-month lease for an additional 148,000 square feet at the Pinnacle Park I building at 3700 Pinnacle Point Drive in Dallas, TX. The firm moved into this new space on July 1.

 

OVERVIEW  |   PROPERTY SPOTLIGHT  |   DIVERSIFICATION  |   ACQUISITIONS
TARGET MARKETS  |   DISPOSITIONS  |   VALUATION
Dispositions

MEPT typically owns an asset for 7 - 10 years, but will sell an asset if a favorable opportunity occurs. The process of determining whether a property should be brought to market starts with assessing the risk profile of the asset and then estimating the achievable sales price. The disposition analysis is continuous and reported quarterly.

A formal hold/sell analysis is conducted each January after the annual budget has been formalized, but it may also be initiated because of an asset review for a quarterly report or a weekly portfolio meeting.

Reasons for disposition may include changes in:

  • Demographic and economic forecasts
  • Real estate market conditions
  • New competitive products
  • Property lease rollover projections, or
  • Market conditions for the sale of property.


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