MetLife Investment Management, the institutional asset management business of MetLife Inc. (NYSE: MET), and Norges Bank Investment Management, the asset management division of Norges Bank, today announced the acquisition of One Memorial Drive in Cambridge, Massachusetts for $825.1 million.
One Memorial Drive is a 17-story, Class A office building located on the Charles River with 409,422 square feet of leasable space. Built in 1986 and renovated in 2018, the fully occupied property has two long-term tenants, InterSystems Corp. and Microsoft Corp.
Robert Merck, global head of Real Estate and Agriculture at MetLife Investment Management, said: “We continue to see significant areas of opportunity within the commercial real estate sector despite the challenges posed by the pandemic over the last 18 months. We are delighted to have once again partnered with Norges Bank Investment Management on a landmark transaction for the U.S. commercial real estate market, one which we believe will create strong value in the years to come.”
Sara Queen, head of Real Estate Equity at MetLife Investment Management, said: “We’re proud to continue partnering with the team at Norges Bank Investment Management as we add high-quality office properties that will generate value over the long-term for our portfolio and our clients. The One Memorial Drive transaction reinforces our approach of targeting properties in strategic geographies and markets, as well as our commitment to environmental sustainability across our real estate portfolio.”
“One Memorial Drive reflects our continued strategy to pursue top commercial real estate assets in highly coveted markets,” added Ashleigh Simpson, regional head of Acquisitions and Joint Ventures at MetLife Investment Management. “Located in a city where demand for office space significantly outstrips supply, and with reliable tenants in resilient industries such as technology and life sciences, we believe One Memorial Drive will be a trophy property within our portfolio.”
MIM and NBIM acquired the property from Oxford Properties Group and a fund advised by J.P. Morgan Global Alternatives.