MPLT Board Chairman Alvaro A. Santos said, “We haven’t ruled out buying it.”
He said if they decide to go in that direction, MPLT will have to conduct an appraisal of the Capital Hill building.
Santos said he was told that the building cost about $3.4 million.
“With a drop in real estate prices, we could get it for less and turn it around and lease it,” he added.
Santos said the trustees have not discussed this formally. “We are brainstorming that maybe we can do it.”
He said they are looking into other “strings” attached to the purchase.
In the meantime, MPLT is still negotiating with the Fund and hopes to arrive at a decision by Friday with regard to a proposed lease agreement.
The Fund board early this month approved a lease deal of $1 per square foot.
“I have asked our legal counsel to meet the legal counsel of the Retirement Fund and work out the things we are concerned about. We feel it is a little bit stringent, if not, expensive,” Santos said.
However he expressed confidence that the agencies would be able to work something out.
“We want something conclusive by Friday because Homeland Security is already wanting to move into our building and we promised them Dec. 1 we will be out,” Santos said.
Asked why MPLT is not considering using its idle Capital Hill property, Santos said, the plan to make use of the 4,000 sq. m. property that the trust purchased in 2007 was shelved in anticipation of a financial crisis.
He said they were estimating to spend about $700,000 to construct the building.
Renting a building is much cheaper, he added.
