Mack-Cali Sells Red Bank Office Portfolio for $84 Million
Mack-Cali Realty Corporation (NYSE: CLI) has announced the sale of its last suburban office portfolio, River Centre, for $84 million to First Mile Properties. This 639,490 sq. ft. complex in Red Bank, New Jersey is currently 66% leased and aims to streamline the company's operations. Proceeds will be allocated towards repaying a term loan. The sale follows two significant transactions earlier this year, with $255 million from Short Hills and $254 million from Metropark, highlighting Mack-Cali's strategic focus on improving its balance sheet.
- Sale of River Centre for $84 million reduces debt and strengthens balance sheet.
- Sale is part of strategic simplification and exit from suburban office market.
- Previous successful sales of $255 million (Short Hills) and $254 million (Metropark) bolster investor confidence.
- Current occupancy of River Centre at 66% may indicate challenges in leasing.
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JERSEY CITY, N.J., June 14, 2021 /PRNewswire/ -- Mack-Cali Realty Corporation (NYSE: CLI) today announces the
The Class A office complex is comprised of six buildings, one of which was recently renovated into dedicated amenity space complete with a state-of-the-art fitness center, a tenant lounge, café and outdoor area. The portfolio is currently
"The sale of River Centre marks another important milestone and takes us one step closer to successfully completing the disposition of our suburban office portfolio," said Mahbod Nia, Chief Executive Officer of Mack-Cali. "We remain focused on concluding the remaining asset sales to meet our objectives of streamlining the business, strengthening our balance sheet and creating value for our shareholders."
"The disposition of the Red Bank portfolio is further evidence of our team's hard work and dedication to our suburban office sales strategy following our strong sales of Short Hills and Metropark, respectively," added Ricardo Cardoso, Executive Vice President and Chief Investment Officer of Mack-Cali. "We are thrilled to build upon the positive momentum of our recent dispositions and complete our exit from the suburban office market in the near-term."
Cushman & Wakefield's Capital Markets team arranged the transaction. "Our team previously sold nearly forty percent of the River Centre properties to Mack-Cali, who did a fantastic job in updating select common areas throughout the portfolio, in addition to creating a fully-dedicated amenity building to serve the campus. River Centre represents nearly half of all of the office inventory with a Red Bank address and future ownership has the opportunity to control a majority of the local market and continue to reposition the portfolio via additional capital investments and leasing strategies," said Andy Merin, who led the assignment alongside David Bernhaut, Gary Gabriel, Frank DiTommaso and Seth Zuidema. The sales team was supported by local leasing experts Kevin Carton and Todd Elfand. In addition, Cushman & Wakefield's Equity, Debt & Structured Finance team of John Alascio, Alex Hernandez, Chuck Kohaut and TJ Sullivan arranged the acquisition financing on behalf of the purchaser, First Mile Properties.
The sale of the Red Bank office portfolio follows Mack-Cali's successful
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.
For more information on Mack-Cali Realty Corporation and its properties, visit https://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:
Amanda Klein/Grace Cartwright
Gasthalter & Co.
212-257-4170
Mack-Cali@gasthalter.com
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SOURCE Mack-Cali Realty Corporation
FAQ
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