Mack-Cali Announces $255 Million Sale of Short Hills Office Portfolio Advancing Suburban Office Sales Momentum
JERSEY CITY, N.J., April 20, 2021 /PRNewswire/ -- Mack-Cali Realty Corporation (NYSE: CLI) today announces the $255 million sale of its Short Hills, New Jersey office portfolio, a four office building portfolio encompassing 843,300 square feet, to The Birch Group. The transaction releases approximately $100 million of net proceeds, after retirement of financing and transaction costs, which is expected to be used to pay down the Company's unsecured corporate debt during the second quarter of 2021.
"This transaction represents yet another significant step towards simplifying our company through the disposition of suburban office properties while generating liquidity to pay down corporate debt and strengthen our balance sheet," said Mahbod Nia, Chief Executive Officer of Mack-Cali. "I would like to thank the team for their hard work and commitment to closing this complex transaction expeditiously."
The office portfolio, comprising four buildings, includes 51 JFK Parkway, a 260,750-square-foot property, which is currently 86.9% leased; 101 JFK Parkway, a 197,196-square-foot property, which is currently 98.4% leased; 103 JFK Parkway, a 123,000-square-foot property, which is currently 100.0% leased; and 150 JFK Parkway, a 262,354-square-foot property which is currently 51.5% leased.
"The Short Hills disposition continues our strong sales momentum in the suburban office market and reinforces our ability to achieve our goals at a solid pace without sacrificing value," added Ricardo Cardoso, Executive Vice President and Chief Investment Officer of Mack-Cali. "While we have reached a significant milestone in our sales process, we continue to work diligently to finalize terms on our remaining non-core commercial assets."
Cushman & Wakefield's Capital Markets team arranged the transaction. "This is the first time in history these four premier buildings – which have a long-standing reputation for attracting nationally recognized blue chip tenants – will trade as a cohesive portfolio. This is a fantastic acquisition for The Birch Group, which has been one of the most active buyers across the Tri-State Region, and we are thrilled to once again execute on a milestone transaction for Mack-Cali," said David Bernhaut, who led the assignment alongside Andy Merin, Gary Gabriel, Frank DiTommaso and Seth Zuidema, in conjunction with Adam Spies and Kevin Donner. The team was supported by Cushman & Wakefield's Equity, Debt & Structured Finance team of John Alascio, Alex Hernandez, Chuck Kohaut and TJ Sullivan.
The sale of the Short Hills Office portfolio follows Mack-Cali's successful $254 million sale of its Metropark portfolio to Opal Holdings last month.
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.
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SOURCE Mack-Cali Realty Corporation
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