Mack-Cali Realty Corporation Closes Acquisition of Pacifica Holding Company; Announces Additional Denver Acquisition
06/12/1998 Category: Acquisitions
CRANFORD, NJ--June 12, 1998--Mack-Cali Realty Corporation (NYSE:CLI) today announced it has completed substantially all of its $188 million acquisition of Pacifica Holding Company, a Denver-based real estate company. Separately, the Company announced the purchase of 400 South Colorado Boulevard, a 125,415 square-foot office property in Denver, for $12 million.
As previously announced, Mack-Cali's acquisition of privately-owned Pacifica Holding Company includes 19 class A office buildings and related operations, and 2.5 acres of land located in the Denver Tech Center and approved for over 400,000 square feet of development. The properties are located in suburban Denver and Colorado Springs, and are leased to 60 tenants, including TRW, Sun Micro Systems, HBO & Co., and Northern Telecom.
Thomas A. Rizk, chief executive officer, commented, "The acquisition of Pacifica has provided us with immediate entry into the attractive Denver market, where we believe there are significant opportunities for growth. The acquisition reinforces our strategy of entering new markets by acquiring management expertise and relationships in addition to premier properties."
Substantially all of the Pacifica acquisition was completed in two phases. The first, which included 10 properties totaling 620,000 square feet, was completed in March. The second, which included seven properties totaling 648,170 square feet, was completed on June 8. The properties in the second phase included the Key Bank Building, at 3600 South Yosemite, a 133,700 square-foot office property in Denver, which was purchased by Mack-Cali directly from MDC Holdings. Two buildings totaling 95,360 square feet remain under contract and are expected to close shortly.
The acquisition announced separately today, 400 South Colorado Boulevard, also known as the Norwest Bank Building, is 94% leased to 17 tenants, including Norwest Bank and the Colorado Department of Revenue. The building is located 1.5 miles north of Interstate 25, the major interstate highway through metropolitan Denver, in the Cherry Creek submarket. The Cherry Creek submarket, one of Denver's strongest and most prestigious office submarkets, encompasses 6.3 million square feet, and had a year-end vacancy rate of 7.5%.
Mitchell E. Hersh, president and chief operating officer stated, "The growing popularity of the Denver market is indicative of the strength and opportunities it has to offer. We are excited about the potential Denver offers Mack-Cali with our growing presence as a result of these transactions."
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 the Company's pending transactions, Mack-Cali will own 245 properties, primarily office and office/flex buildings, totaling approximately 26.9 million square feet and serving over 2,300 tenants. Mack-Cali's properties are located in 11 states, primarily in the Northeast, as well as the Southwest and West.
Additional information on Mack-Cali Realty Corporation is available on the Company's website at www.mack-cali.com.
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, reports on Form 8‑K, and annual reports on Form 10-K.