Cali Realty Corporation Announces Sale of 15 Essex Road, Paramus and the Simultaneous Acquisition of 103 Carnegie Center, Princeton
03/20/1996 Category: Acquisitions
CRANFORD, NJ--March 20, 1996--Cali Realty Corporation (NYSE:CLI), today announced the sale of its building located at 15 Essex Road, Paramus, New Jersey. This 132,000 square foot property is 17 years old and 56 percent leased. The purchaser, The Valley Hospital, intends to occupy substantially all of the vacant portions of the building.
In connection with the sale, on March 12, 1996 the Company prepaid approximately $5.5 million of its REMIC financing and obtained a release of the mortgage liens on the property.
In a related transaction, the Company also announced the acquisition of 103 Carnegie Center, Princeton, New Jersey, and its intention to exercise its option to purchase 3.3 acres of development land adjacent to its Commercenter business park in Totowa, Passaic County, New Jersey.
103 Carnegie Center is a three-story, Class A, 95,000 square foot office building located in the prestigious Carnegie Center along the Route 1 corridor between New York City and Philadelphia. The building, which was constructed in 1984, is currently 91.5 percent leased.
In order to qualify as a tax free exchange, the Company will use the net proceeds from the sale of 15 Essex Road to acquire 103 Carnegie Center and the 3.3 acres of land in Totowa.
Commenting on the tax free property exchange, Thomas A. Rizk, President and Chief Executive Officer, said "This transaction allowed the Company to redeploy its capital at a significantly higher return and to increase its Funds From Operations (FFO) without expending capital or incurring any additional debt. We believe the structure of this transaction continues to demonstrate management's commitment to increase shareholder value."
Cali Realty Corporation is a fully integrated, self-administered, self-managed real estate investment trust (REIT) providing leasing, management, acquisition, development, construction and tenant related services for its portfolio. Upon completion of the Harborside purchase, the Company will own 48 properties, primarily Class A office and office/flex buildings, totaling approximately 6.4 million square feet. All of the properties are located in New Jersey, New York and Pennsylvania.