$237M Patriots Plaza Recapitalization

Multi-Employer Property Trust (MEPT) and its real estate advisor, Bentall Kennedy Limited Partnership, announced the recapitalization of Patriots Plaza in DC, forming a joint venture partnership through the sale of a "significant interest" in the property to Ärzteversorgung Westfalen-Lippe (ÄVWL), an institution of the Medical Association of Westfalen-Lippe, one of the largest pension funds in Germany. According to a CoStar report, MEPT sold a 49% stake in the 981,116-square-foot office complex, which was built by MEPT and Trammell Crow Co. in the late 2000's. Genesis International represented ÄVWL in the acquisition while Eastdil Secured represented MEPT in the sale. Clifford Chance acted as counsel and PWC as tax advisor for ÄVWL.

"MEPT is pleased to be commencing a strategic partnership with ÄVWL, a well-capitalized and sophisticated global investor, and at the same time, consistent with MEPT's strategic objectives, further optimizing its Washington, D.C. area allocation and providing for redeployment of the sale proceeds," said David Antonelli, Executive Vice President and MEPT Portfolio Manager at Bentall Kennedy, in a press release.

The office buildings at 355, 375, 395 E Street SW were built by MEPT and Trammell Crow in three phases - Patriots Plaza I, a 280,001 square foot, twelve-story office building was completed in 2005 and Patriots Plaza Phases II and III, encompassing 701,589 square feet in two buildings, were completed in 2009 and achieved LEED Gold certification. At the time of sale, Patriots Plaza was approximately 90% leased with the FBI, U.S. Department of Agriculture, Department of Health and Human Services and FEMA anchoring the complex.

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