Mack-Cali 2000 Annual Report

In 2000, we renewed our focus on growth in our core high-barrier-to-entry markets in the Northeast and Mid-Atlantic regions. While Mack-Cali has always had a strong, concentrated presence in the Northeast, over the last few years we had also established beachheads in the West and Southwest through the acquisitions of property portfolios and companies. While these investments proved profitable, we have determined that our best strategy for growth is to concentrate in high-barrier-to-entry markets where we can further expand our critical mass to gain an even greater competitive advantage.
Along with our decision to terminate the Prentiss Properties Trust transaction, we implemented a capital recycling program in which we are disposing of assets deemed non-core and reinvesting those proceeds in strategic opportunities in the Northeast and Mid-Atlantic regions--for acquisitions in strong submarkets, development of strategically-located land sites, and the repositioning of assets to create value. Within the next 12 to 24 months, we expect to complete the sale of 47 properties in Dallas, Houston, San Antonio, Denver, Phoenix and other markets.
Mack-Cali has already taken significant steps toward achieving our strategic goals. We sold assets in Amarillo and Austin, Texas; and Omaha, Nebraska. And we acquired premier, class A office properties in our core Northeast markets--including Gatehall IV, a 248,480 square-foot building in Parsippany, New Jersey, purchased for $42.4 million; and Taxter Corporate Park, a two-building complex in Westchester County, New York, totaling 341,100 square feet and purchased for $42.7 million.
We continue to examine every asset and its potential to create value for shareholders. This past year we sold two properties in New Jersey that we believed would not meet our standards for growth in value--International Financial Tower in Jersey City, for $152.5 million, and Kemble Plaza II in Morris Township, for $82.7 million. These sales generated significant proceeds for the Company that have been reinvested in strategic, higher-growth opportunities in our core markets.



In 2000, we renewed our focus on growth in our core high-barrier-to-entry markets in the Northeast and Mid-Atlantic regions. While Mack-Cali has always had a strong, concentrated presence in the Northeast, over the last few years we had also established beachheads in the West and Southwest through the acquisitions of property portfolios and companies. While these investments proved profitable, we have determined that our best strategy for growth is to concentrate in high-barrier-to-entry markets where we can further expand our critical mass to gain an even greater competitive advantage. Along with our decision to terminate the Prentiss Properties Trust transaction, we implemented a capital recycling program in which we are disposing of assets deemed non-core and reinvesting those proceeds in strategic opportunities in the Northeast and Mid-Atlantic regions--for acquisitions in strong submarkets, development of strategically-located land sites, and the repositioning of assets to create value. Within the next 12 to 24 months, we expect to complete the sale of 47 properties in Dallas, Houston, San Antonio, Denver, Phoenix and other markets.		Mack-Cali has already taken significant steps toward achieving our strategic goals. We sold assets in Amarillo and Austin, Texas; and Omaha, Nebraska. And we acquired premier, class A office properties in our core Northeast markets--including Gatehall IV, a 248,480 square-foot building in Parsippany, New Jersey, purchased for $42.4 million; and Taxter Corporate Park, a two-building complex in Westchester County, New York, totaling 341,100 square feet and purchased for $42.7 million. We continue to examine every asset and its potential to create value for shareholders. This past year we sold two properties in New Jersey that we believed would not meet our standards for growth in value--International Financial Tower in Jersey City, for $152.5 million, and Kemble Plaza II in Morris Township, for $82.7 million. These sales generated significant proceeds for the Company that have been reinvested in strategic, higher-growth opportunities in our core markets.