Cali Realty Announces Contracts for Three Portfolio Acquisitions
10/13/1995 Category: Acquisitions
CRANFORD, NJ--October 13, 1995--Cali Realty Corporation (NYSE:CLI) has signed contracts to acquire three portfolios of properties totaling 1.14 million square feet of office and office/flex buildings in New Jersey. The aggregate purchase price is $97.3 million. The announcement was made today by Thomas A. Rizk, President and CFO.
A contract has been signed to acquire a portfolio of 10 buildings containing 582,000 square feet from Commercial Realty & Resources Corp., a wholly owned subsidiary of New Jersey Resources Corporation, a public utility holding company. The buildings include five office buildings ranging from two to four stories and five single story office/flex buildings. Eight of the properties are located in Monmouth County, New Jersey and two of the properties are located in Atlantic County, New Jersey. The entire portfolio is 96% leased. The purchase price is $52.6 million and the company has certain options to acquire approximately 144 acres of adjacent land for future development. All of the buildings are along major road networks in the New York City-Philadelphia corridor.
The company has signed a contract to purchase a portfolio of office and office/flex buildings in Northern New Jersey containing approximately 400,000 square feet. The office space is 98% leased and the office/flex space is 95% leased. The purchase price is $31.2 million. The company has certain rights to acquire approximately 16 acres of vacant land also in Northern New Jersey. The portfolio is located along major highways and is easily accessible from the New York metropolitan areas and airports.
The third contract is for a four building portfolio containing 170,300 square feet know as Horizon Center in Mercer County, New Jersey. The seller is a subsidiary of Trafalgar House PLC, a multi-national conglomerate based in London. The portfolio consists of one two story office building and three single story office buildings and is 95% leased. The purchase price is $13.5 million. Along with the existing complex, the company has certain rights to acquire approximately 128 acres of land for future development adjacent to the complex. Horizon Center is located along Interstate 195 and the New Jersey Turnpike in the New York-Philadelphia corridor.
"The acquisition of these high quality portfolios substantially strengthens our presence in these particular suburban submarkets and complements our existing portfolio. We are looking forward to adding the 23 buildings occupied by 109 tenants to Cali Realty's holdings," said Rizk. He noted that, "With these new acquisitions, the Cali portfolio will increase by 75% since our IPO in August of 1994."
Cali Realty Corporation is a self-administered, self-managed real estate investment trust (REIT) with corporate headquarters in Cranford, New Jersey. The company is a leading property owner specializing in leasing, management, acquisition, construction and development of office buildings in Northern and Central New Jersey and in Southern New York State. The Cali portfolio consists of 16 Class A office buildings totaling approximately 2.73 million square feet and one residential property consisting of 327 units located in Burlington County, New Jersey.