MEPT

MIKE MCKEE JOINS KENNEDY ASSOCIATES AS CEO IN THE FIRST QUARTER OF 2010
Originally a Board of Managers’ independent director at Kennedy Associates, MEPT’s real estate advisor, Mike McKee joined Kennedy full-time as CEO. The addition of Mike McKee expands Kennedy’s executive team and allows the company to divide the role of CEO and President into two positions that were formerly both held by John Parker, a founding principal of Kennedy...

IN FEBRUARY, MEPT SOLD BANDINI, AN INDUSTRIAL ASSET IN LOS ANGELES, FOR GROSS PROCEEDS OF $14.8 MILLION
Bandini, comprised of three, single-story, industrial buildings totaling 335,000 square feet, was originally purchased in 2003 as part of a 17-asset industrial portfolio and was 73 percent leased to three tenants. When acquired, the strategy for the portfolio was to sell each asset individually, maximizing the sale price MEPT could obtain....

DURING THE FIRST QUARTER, MEPT SOLD BEDFORD PARK BUSINESS CENTER IN CHICAGO FOR GROSS PROCEEDS OF $8.2 MILLION
MEPT built Bedford Park, a 296,000 square industrial building, in 2005. Bedford Park was targeted for sale because of persistent vacancy at the property and weakness in the surrounding submarket. Additionally, the sale provided an opportunity to reduce the Fund’s over-allocation to the Midwest region. The asset was purchased by a local owner/user, GRM, a provider of information management solutions....

Patriots Plaza signs new government tenant
The government continues to flock to Patriots Plaza in Southwest, having just signed a new 58,143-square-foot lease at the site this week. The 321,502-square-foot building, completed in October, is part of a three-phase, 1 million-square-foot office complex developed and leased by Trammell Crow Co. of D.C…The owner of Patriots Plaza, Multi-Employer Property Trust, has seen gradual leasing success at the complex since its first building, Patriots Plaza I, was completed in 2005…

Columbia deal may be hopeful sign. Sale price highest since 2007; financing rare
The majority owner of the Columbia Center towers in Troy has sold its stake in the complex ...Troy-based Kirco Development Corp., developer of both towers and formerly a minority investor, bought out the majority investor…

San Francisco Office Values Begin to Crystalize
One of the upcoming sales is 303 Second St. (left), a 732,000 square-foot property 90 percent leased through the end of March. This transaction will give the San Francisco office market a benchmark for both building values and capitalization rates… There was plenty of buyer interest in the property, too; it attracted nearly 20 bids. The top seven or eight of the offers were north of $300 a square foot…


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

Valuation

MEPT maintains a valuation process that is one of the most thorough and objective of any open-end fund. Each asset in the Fund's portfolio is appraised quarterly by an independent MAI-designated member of the Appraisal Institute who must be selected and engaged by MEPT's trustee, NewTower Trust Company. In addition, the NewTower Valuation Services (NVS) team has a comprehensive list of content and analytical requirements that must be included in every appraisal submitted and it is the general practice of NewTower to engage an appraiser for no more than three consecutive years on the same MEPT asset.

Once each appraisal is received, NVS reviews the report and accompanying discounted cash flow analysis to evaluate the valuation methodologies employed, ensure the accuracy of property and financial information (total building and net rentable areas, rent roll, expenses, occupancy, etc.), and confirm the relevance as well as applicability of critical market data conclusions (rental rates, tenant improvement allowances, leasing concessions, supply and demand characteristics, etc.).

As an additional safeguard, NewTower retains an independent valuation firm, PricewaterhouseCoopers, to verify the accuracy of the appraisal process by thoroughly reviewing each report to determine regulatory and professional standards compliance, completeness of documentation, appropriateness of methodology, accuracy of calculations, and reasonableness of conclusions. The independent review firm engaged must concur with each appraisal before it is finalized and recommended for acceptance by NewTower on behalf of MEPT.

Real Estate Research Corporation (RERC) consults NewTower on valuation best practices and reporting. As NewTower operates in a heavily regulated environment, independent advisors and auditors are retained to perform a variety of services including annual audits of financial statements and reviews of internal controls. Additionally, NewTower undergoes an annual review by its regulator, the Maryland Division of Financial Regulation.

Back to Home Sitemap