MetLife Investment Management (MIM), the institutional asset management business of MetLife, Inc. (NYSE: MET), today announced that it has completed $18.6 billion in new real estate debt and equity transactions trading in 2021, further cementing its leadership position as one of the largest U.S. and global real estate investors. The gross market value of MIM’s commercial real estate assets under management (AUM) reached $109.8 billion1 as of December 31, 2021, a reported record for MIM. As of December 31, 2021, the gross market value of total assets under management for commercial mortgages increased to $73.0 billion2, while the gross market value of total assets under management for real estate equities reached 36, $8 billion.
MIM’s commercial real estate platform includes debt and equity issuance and asset management capabilities in 13 offices in the US and international markets including UK, Japan, Korea , Chile and Mexico.
“Our real estate platform achieved record investment activity in 2021, creating value for our clients and partners despite the continued challenges related to the pandemic. This outstanding performance is a testament to the strength of our platform, the experience and agility of our team, and our commitment to performance across cycles,” said Robert Merck, Global Head of Real Estate for MetLife. InvestmentManagement. “We look forward to building on this momentum in 2022 as we continue to seek to deliver strong results to our stakeholders.”
MIM’s commercial mortgage team initiated 235 transactions in 2021, a record for MIM, totaling over $15.3 billion in capital provided to support institutional real estate investors globally. These transactions were in traditional and alternative property types such as life sciences, self-storage, student housing and manufactured homes. Additionally, the team successfully launched a closed-end hotel debt fund, taking advantage of favorable market conditions and capitalizing on industry expertise.
In equity real estate investing, MIM acquired $3.3 billion worth of properties in 2021, a 50% increase in investment activity from the prior year. MIM continued to seek assets to enhance the expanding portfolios of its investment management clients, such as the $825 million acquisition of One Memorial Drive, a LEED-certified office building near the technology group of Cambridge, MA. Over the past year, the equity team has also made strategic investments in alternative sectors, including labor housing, manufactured housing and life sciences. Our equity team also remained active in traditional sectors, such as offices, taking advantage of the capital market dislocation resulting from the continued uncertainty around the pandemic.
MIM also continued to expand its investments outside the United States in 2021, increasing commercial real estate assets under management in several key global markets. In Asia, MIM generated the equivalent of $781 million in new equity acquisitions and mortgage originations MIM also continued to increase its presence in the United Kingdom and Latin America, with the equivalent of $576 million and $768 million, respectively, from commercial mortgage originations in 2021.
Commercial mortgage origination
MIM initiated a number of significant commercial mortgage transactions4 in 2021, including the following:
- 238 Main Street (Cambridge, MA) – $475 million first mortgage on an office/life sciences property
- Palisades Village (Pacific Palisades, CA) – $235 million on a mixed-use commercial property
- EQT Exeter Core Portfolio (various, US) – $184m first industrial portfolio mortgage
- Heitman/Life Storage National Self-Storage Portfolio (various, US) – $145 million self-storage portfolio
- 475 Clermont Ave (Brooklyn, NY) – $143 million first mortgage on an apartment
Production of real estate equity investments
Some of the major real estate transactions completed in 2021 include:
- One Memorial Drive (Cambridge, MA) – Acquisition of a 409,422 square foot (sf) Class A office building
- 50 & 60 Binney Street (Cambridge, MA) – Joint venture recapitalization of a fully leased Class A life sciences building totaling 532,000 square feet
- Cobblestone Manufactured Housing (various, US) – Joint venture recapitalization of 11 manufactured housing communities with 1,743 sites in Florida, Arizona, Nevada and California
- Corner63 (Seattle, WA) – Transit-oriented development of a 139-unit Class A apartment building
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