Acquisition of majority stake in Washington DC metro office asset for $139.8 million

Acquisition of majority stake in Washington DC metro office asset for $139.8 million

Press Release
09 October 2017

AXA Investment Managers - Real Assets completes acquisition of majority stake in Washington DC metro office asset for $139.8 million

AXA Investment Managers - Real Assets (“AXA IM - Real Assets”), a global leader in real asset investments and the leading(1) real estate portfolio and asset manager in Europe, announces that it has completed, on behalf of one of its clients, the acquisition of a majority stake in Montgomery Tower, a c.367,000 sq ft office asset located in downtown Bethesda, Maryland, from Rockpoint and MRP Realty for $139.8 million (c.€119 million (2)). AXA IM - Real Assets acquired a majority interest in the property as part of a property recapitalisation with MRP Realty, a real estate owner, developer and operator active in the northeast U.S., retaining the remaining ownership interest and assuming property management responsibility for the asset as AXA IM - Real Assets’ new joint venture partner.

The c.367,000 sq ft LEED Gold certified office building is spread across 12 floors, with below and above grade parking facilities. Originally constructed in 1980, the asset has recently undergone refurbishment to boost the amenities offering which now includes a new lobby, breakout areas, a conference center, a c.4,000 sq ft fitness center, modernised elevators, an outdoor seating terrace, electric car charging stations and bike storage.

Montgomery Tower, located six miles north of Washington DC, benefits from strong local transport infrastructure including the Bethesda Metro Station one block away connecting the city to the entire DC metro network via the Red Line train. In addition, the building is in close proximity to major highways, providing road access to Virginia and Washington DC as well as Reagan, Dulles and BWI Airports. The prosperous area’s strong demographics are complimented by vibrant shopping, restaurant and entertainment options in the immediate area.

This transaction adds to the growing c. €2 billion(3) portfolio that AXA IM - Real Assets manages in the U.S. on behalf of clients, and comes shortly after the acquisition, on behalf of clients, of a majority stake in University Center Chicago, a 1,732-bed student housing property located in downtown Chicago, Illinois, earlier this summer.

Steve McCarthy, Head of North America at AXA IM - Real Assets, commented: “This core-plus asset’s transit connectivity coupled with its market leading amenities in this highly sought-after and wealthy submarket made this attractive investment opportunity stand out to us, offering high potential for the delivery of long-term stable income streams for our clients. Furthermore, this acquisition sees us follow through on our objective to further expand our clients’ North American portfolio, with a high quality and diversified asset mix.”

“We look forward to working alongside our new operating partner, MRP Realty, and leveraging their significant experience of both this asset specifically and the local market to maximise the value of this prime investment for the benefit of our clients.”

– ENDS –

1 Source: INREV/ANREV Fund Manager AUM Survey – May 2017
2 Conversion as of October 9th, 2017
3 Source: AXA IM - Real Assets’ unaudited data as of end of June 2017


Press Contacts

AXA Investment Managers - Real Assets
Charline Coué, Media Relations Manager
Jocelyne Tamssom, Head of Communications
Tel +33 1 44 45 97 95

FTI Consulting Inc.
Richard Sunderland, Richard Gotla, Ellie Sweeney, Tom Gough
Tél: +44 20 3727 1000

Note to editors

AXA Investment Managers is an active, long-term, global, multi-asset investor focused on enabling more people to harness the power of investing to meeting their financial goals. By combining investment insight and innovation with robust risk monitoring, we have become one of the largest asset managers in Europe with ambitions to become the chosen investment partner of investors around the world. With approximately €735 billion in assets under management as of end June 2017, AXA IM employs over 2,450 people based in 29 offices around the world.

AXA Investment Managers - Real Assets has over €71 billion in assets under management, including €54.5 billion in direct property & infrastructure and €13.6 billion in real asset finance as of end of June 2017. We offer a 360° approach to investing in real assets, which comprises opportunities in equity or debt, across different geographies and sectors, as well as via private or listed instruments. We are a global leader in real assets investment, the number one property portfolio and asset manager in Europe(1), and one of the largest worldwide. Our teams have been managing funds and mandates for over 30 years and comprise about 650 people in 15 offices that operate in over 20 countries around the world, which provide us with in-depth knowledge of countries, cities and sectors.

AXA Investment Managers is part of the AXA Group, a global leader in financial protection and wealth management.

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1 Source: AXA IM unaudited data as of end of June 2017
2 Source:  AXA IM - Real Assets’ unaudited data as of end of June 2017
3 Source: INREV/ANREV Fund Manager Survey – May 2017


This document is aimed solely at the media and is for information purposes only. The opinions expressed here are the views of the author and do not constitute investment advice. This is not a recommendation to purchase, sell or subscribe to financial instruments, an offer to sell investment funds or an offer of financial services. This press release is as dated. They do not necessarily represent the views of any company within the AXA Investment Managers Group and may be subject to change without notice. This does not constitute a Financial Promotion as defined by applicable laws and regulation and is for information purposes only.  No financial decisions should be made on the basis of the information provided. Information regarding the background and personnel of AXA IM - Real Assets is provided for information purposes only.

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