Mack-Cali Realty Corporation Acquires Fairfield County Office Property for $18.6 Million
09/15/1998 Category: Acquisitions
Company Holdings in Fairfield County Now Total Six Properties Aggregating 566,250 Square Feet
CRANFORD, NJ--September 15, 1998--Mack-Cali Realty Corporation (NYSE:CLI) today announced that it has acquired a 145,000 square-foot office property in Fairfield County, Connecticut, for $18.6 million.
40 Richards Avenue, Norwalk, Connecticut, is a class A, seven-story office property with 401 parking spaces on three structured levels. The building was constructed in 1985 and is currently 100% leased to 31 tenants, including Executone Information Systems, Inc., Chartrec International, Inc. and Western International Media. At the purchase price of $18.6 million, or $128 per square foot, the property was acquired at approximately 20% below replacement cost. The acquisition was financed through the issuance of 414,114 operating partnership units in Mack-Cali Realty, L.P., valued at $12.6 million, and from the Company's cash reserves.
Commenting on the acquisition, Thomas A. Rizk, chief executive officer, stated, "We are excited to announce that we acquired this class A office building at well below replacement cost, with leases that are approximately 10% to 15% below market. It adds to our presence in Fairfield County, which is a healthy market with high barriers to entry, and to our dominant presence in the Northeast."
The property is situated in western Norwalk just east of Darien, between Connecticut Avenue (also known as Route 1 or Boston Post Road) and Exit 13, a 4-way interchange on Interstate 95. It is located in the South-Central Fairfield submarket of Fairfield County, Connecticut. As reported by Cushman & Wakefield Research Services, as of June 30, 1998, the class A vacancy rate in South-Central Fairfield submarket was 5.9%, with a positive absorption of 184,243 square feet in the second quarter of 1998. The acquisition increases Mack-Cali's holdings in Fairfield County, Connecticut, to six properties, aggregating 566,250 square feet.
Mack-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. With the completion of pending transactions, Mack-Cali will own or have interests in 251 properties, primarily office and office/flex buildings, totaling approximately 27.7 million square feet, serving over 2,300 tenants in 12 states and the District of Columbia.
Certain information discussed in this press release may constitute forward-looking statements within the meaning of the Federal Securities law. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for office, office/flex and industrial/warehouse properties; interest rate levels; the availability of financing; and other risks associated with the development and acquisition of properties, including risks that the development may not be completed on schedule, that the tenants will not take occupancy or pay rent, or that development or operating costs may be greater than anticipated. For further information on factors which could impact the Company and the statements contained herein, reference should be made to the Company's filings with the Securities and Exchange Commission including quarterly reports on Form 10-Q, current reports on Form 8-K, and annual reports on Form 10-K.