Mack-Cali Realty Corporation Advances Suburban Disposition Strategy

Rhea-AI Summary

Mack-Cali Realty Corporation (NYSE: CLI) announced the successful sale of 5 Vaughn Drive in Princeton, NJ, to American Equity Partners for $7.5 million. This sale is part of Mack-Cali's ongoing divestment strategy to streamline its portfolio and strengthen its financial position. The 100,000-square-foot Class A office building is currently 30% leased. Previously, the company completed the Phase 1 sale of its Parsippany and Giralda Farms portfolio for $167.6 million and additional sales totaling $46.8 million from other assets, emphasizing their focus on core properties.

Positive

• Completed sale of 5 Vaughn Drive for $7.5 million.
• Ongoing divestment strategy indicates proactive management.
• Previous successful sales totaling $214.4 million strengthen balance sheet.

Negative

• 5 Vaughn Drive is only 30% leased, indicating lower occupancy rates.

JERSEY CITY, N.J., Oct. 26, 2020 /PRNewswire/ -- Mack-Cali Realty Corporation (NYSE: CLI) announced today that it has completed the sale of 5 Vaughn Drive in Princeton, NJ to American Equity Partners for a total of $7.5 million.

"We continue to make great progress on our divestment strategy, which includes shedding suburban assets and fortifying our balance sheet," said MaryAnne Gilmartin, Board Chair and Interim Chief Executive Officer of Mack-Cali Realty Corporation. "We will remain diligent in our efforts to reduce corporate debt and re-focus on our core assets, including Harborside and multifamily assets across the region."

5 Vaughn Drive is a nearly 100,000-square-foot, Class A office building within the Princeton Metro Center complex, which is 30% leased. The complex is well-located, close to downtown Princeton and adjacent to the train station. 

The deal was led by Ricardo Cardoso, EVP and Chief Investment Officer. "Ricardo and his team have done a fantastic job advancing our suburban disposition strategy, despite any obstacles the pandemic could have presented," Gilmartin added. "I commend everyone on the team for getting yet another transaction over the finish line."

Last month the Company announced the completion of the Phase 1 sale of its Parsippany and Giralda Farms portfolio, comprising 11 buildings in Morris County for a total of $167.6 million. In addition, the Company has closed on the sale of its 325 Columbia Turnpike asset in Florham Park, NJ for $25.8 million, as well as the first asset of its Phase II sales tranche of its Parsippany and Giralda portfolio, 9 Campus Drive in Parsippany, NJ for $21.0 million. 

About Mack-Cali Realty Corporation

One of the country's leading real estate investment trusts (REITs), Mack-Cali Realty Corporation is an owner, manager and developer of premier office and multifamily properties in select waterfront and transit-oriented markets throughout New Jersey. Mack-Cali is headquartered in Jersey City, New Jersey, and is the visionary behind the city's flourishing waterfront, where the company is leading development, improvement and place-making initiatives for Harborside, a master-planned destination comprised of class A office, luxury apartments, diverse retail and restaurants, and public spaces.

A fully integrated and self-managed company, Mack-Cali has provided world-class management, leasing, and development services throughout New Jersey and the surrounding region for over two decades. By regularly investing in its properties and innovative lifestyle amenity packages, Mack-Cali creates environments that empower tenants and residents to reimagine the way they work and live.

Additional information on Mack-Cali Realty Corporation and the commercial real estate properties and multifamily residential communities available for lease can be found on the Company's website at www.mack-cali.com.

Forward-Looking Statements

Statements made in this communication may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can be identified by the use of words such as "may," "will," "plan," "potential," "projected," "should," "expect," "anticipate," "estimate," "target," "continue," or comparable terminology. Such forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate and involve factors that may cause actual results to differ materially from those projected or suggested. Readers are cautioned not to place undue reliance on these forward-looking statements and are advised to consider the factors listed above together with the additional factors under the heading "Disclosure Regarding Forward-Looking Statements" and "Risk Factors" in the Company's Annual Report on Form 10-K, as may be supplemented or amended by the Company's Quarterly Reports on Form 10-Q, which are incorporated herein by reference. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise, except as required under applicable law.

Media Contact:
Jeremy Soffin
mack-cali@berlinrosen.com 
(646) 200-5318

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SOURCE Mack-Cali Realty Corporation

FAQ

What was the sale amount for 5 Vaughn Drive by Mack-Cali Realty Corporation?

Mack-Cali Realty Corporation sold 5 Vaughn Drive for $7.5 million.

What is Mack-Cali Realty Corporation's current strategy regarding its assets?

Mack-Cali is focusing on a divestment strategy to reduce debt and concentrate on core assets.

How has Mack-Cali Realty Corporation performed in its asset sales recently?

Mack-Cali Realty has completed recent asset sales totaling $214.4 million, enhancing its financial standing.

What percentage of 5 Vaughn Drive is currently leased?

5 Vaughn Drive is currently 30% leased.