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MEPT IS ON PACE TO ACHIEVE ITS DISPOSITION TARGET SET AT START
OF 2009. In the face of a difficult transaction environment, in early 2009, MEPT identified a number of assets for disposition that no longer fit with the Fund’s long-term investment strategy, that have characteristics that may contribute to obsolescence, or that have downside leasing risk that outweighs their long-term potential. MEPT sought to generate approximately $300 – $400 million in net sales proceeds for the Fund and position the Fund going into the next market cycle. Through the end of the third quarter, MEPT sold 26 assets for $293 million in net proceeds and achieved an overall IRR for MEPT of 9.8 percent.

IN AUGUST, MEPT SOLD CRANBERRY WOODS I, II, III and IV IN PITTSBURGH FOR GROSS SALE PROCEEDS OF $89.5 MILLION.
MEPT completed construction of the four office buildings, totaling 452,913 square feet, between 1999 and 2007, and created over 844,000 job hours for members of the local Building Trades. Fully-leased to multiple tenants including Westinghouse Electric Co., the assets were targeted for sale as part of MEPT’s investment strategy to reduce the Fund’s allocation to suburban office assets.

IN SEPTEMBER, MEPT RAISED GROSS PROCEEDS OF $25.0 MILLION IN THE SALE OF ARBORETUM LAKES WEST AND ARBORETUM LAKES OFFICE.
The two-building Arboretum Lakes Office asset in suburban Chicago totaled 288,703 square feet and was completed in 1986, while Arboretum Lakes West, a 190,361 square foot office building, was completed in 1998. MEPT’s construction of these assets generated more than 804,000 job hours for members of the local Building Trades.


Patriots Plaza III in SW yesterday got the largest DC lease of 2009 that wasn't a renewal
This (the lease) is part of the one million square foot Patriots Plaza…Patriots III, finished in September, is owned by MEPT, a $4.3 billion real estate equity fund owned by 331 pension plans...

Department of Agriculture signs big lease in Patriots Plaza III
The Department of Agriculture has signed a massive new lease at a new office building in Southwest D.C. At 330,000 square feet, the agency will nearly fill Patriots Plaza III, a 380,000-square-foot building developed by Multi-Employer Property Trust...

First Potomac Invests $25.5M in Cloverleaf Center
First Potomac Realty Trust purchased the Cloverleaf Center on Century Boulevard in Germantown, MD, from MEPT/New Tower Trust Co. for $25.5 million, or about $147 per square foot...

 

Union Labor Requirement

MEPT uses 100% union labor for all new construction, renovation or rehabilitation, and tenant improvements. Specifically, MEPT's contractor policy is as follows:

i. As has been the policy since MEPT's inception in 1982, all on-site construction work controlled by, and/or paid for, by MEPT shall be performed by contractors a) that are a party to, or bound by, a collective bargaining agreement applicable to the geographic area in which the project is located, applicable to the trade or trades in which the work under the contract is to be performed, and entered with one or more labor organizations affiliated with the Building and Construction Trade Department of the AFL-CIO, or with an independent, nationally recognized labor organization, or one of its affiliated locals; b) that solely employ members of such labor organizations to perform work within their respective jurisdictions; and, c) that require each subcontractor of every tier who performs any work on the project to comply with a) and b).

ii. All office building custodial work controlled by, and/or paid for, by MEPT shall continue to be performed by cleaning contractors that are a party to a collective bargaining agreement. In markets where there are no such contractors, MEPT shall use cleaning contractors that provide the prevailing standard in wages and benefits, and that demonstrate a respect for labor, local, and national laws.

iii. MEPT will continue to make available to union leaders the names of its construction, third-party building systems maintenance service contractors, and custodial contractors, when their engagement is controlled by, and/or paid for, by MEPT.

iv. It is MEPT's policy to utilize Union stationary engineers on MEPT properties, or to mandate that a card check program be encouraged, at the very least.

v. MEPT will continue to make its Contractor Policy known to its development and property management providers.


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