 We added to our holdings in the vibrant Washington, D.C., area by acquiring the magnificent Capital Office Park in Greenbelt, Md. We increased our concentration in the prosperous Bergen County, N.J., submarket with a building we purchased in Rochelle Park adjacent to our Mack-Cali Centre IV campus.
Most significantly, our May acquisition of The Gale Company cemented our position as a truly preeminent provider of office space in New Jersey. Along with the transaction we acquired interests in 39 class A office properties, enhancing our competitive position in leading New Jersey submarkets such as Parsippany, Princeton and Roseland. The Gale acquisition also brings to our Company a third-party services platform and an expanded network of deep industry and corporate relationships.
 We've already started to reap some of the benefits of the new Gale relationships. In June, we partnered with a JPMorgan fund and Gale International, a private firm, on the acquisition of a seven-building office portfolio in suburban Boston. This not only provided us with a value-add opportunity, but also the ability to extend our Northeast platform northward. And with a minimal capital investment of just $880,000, our Gale subsidiary acquired a three percent interest in One Newark Center, a premier 22-story office tower in Newark's central business district. With this investment, we retained management responsibilities for the building, and gained rights to develop an additional 600,000 square-foot office tower on an adjacent land parcel.
Achievements in Leasing
Notwithstanding the buoyant investment sales market, the leasing landscape continued to be challenging in most areas throughout 2006. Businesses remained cautious regarding long-term commitments for office space, limiting overall positive absorption and upward pressure on rents. However, Mack-Cali's position, presence, prestige and financial stability within our core markets helped us improve our occupancies and outperform our competitors. |
