Mack-Cali Realty (CLI) Announces $255 Million Sale of Short Hills Office Portfolio
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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.
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