Mack-Cali Realty Corporation Completes $359.5 Million in Acquisition and Financing Transactions
04/03/1998 Category: Acquisitions
$259.5 Million of Acquisitions Adds Over 1.4 Million Square Feet to Company's Portfolio in New Jersey and Texas
CRANFORD, NJ--April 3, 1998--Mack-Cali Realty Corporation (NYSE:CLI) today announced the completion of acquisition and financing transactions totaling $359.5 million. The acquisitions, which total $259.5 million and add over 1.4 million square feet to the Company's portfolio, include the previously-announced acquisitions of Prudential Business Campus and Morris County Financial Center, both in Parsippany, New Jersey, as well as the acquisition of Cielo Center in Austin, Texas.
Mack-Cali acquired substantially all of the interests in Prudential Business Campus for $170 million. Located in Morris County, New Jersey, Prudential Business Campus is an 860,000 square-foot, 97% leased, class A office complex with five office buildings and a daycare center, plus 74 acres of land zoned for up to 1.3 million square feet of office development.
With the closing of Prudential Business Campus, Mack-Cali also completed the placement of $100 million in common equity to Strategic Value Investors, an investment fund managed by Prudential Real Estate Investors.
The Company also completed the acquisition of Morris County Financial Center, a 308,215 square-foot, class A office complex that adjoins the Prudential Business Campus, for $52.5 million. The two-building complex is currently 97% leased.
Commenting on the acquisitions, Thomas A. Rizk, chief executive officer, stated, "The addition of these premier properties to our portfolio confirms our calculated, deliberate strategy of enhancing our position as the dominant player in New Jersey and strengthening our strategic beachheads in other regions. Our significant first quarter activity is representative of the tremendous opportunities we are seeing in the office marketplace and indicative of our full acquisition pipeline, our valuable relationships in the industry, and our future growth potential."
In an additional transaction, Mack-Cali announced that it has acquired Cielo Center, a three-building class A office complex totaling approximately 270,000 square feet in Austin, Texas, for $37 million. The property, one of Austin's largest suburban office projects, was acquired from JMB Group Trust III. The complex is currently 98% leased to 41 tenants, including American Express Financial Advisors, Inc., New York Life Insurance Company, Compass Bank, IT Corporation and United Healthcare.
Mitchell E. Hersh, president and chief operating officer, stated, "The acquisition of Cielo Center builds on our position in the favorable Southwest markets, increases our holdings in Texas to 21 properties, totaling three million square feet, and marks our initial entry into the attractive Austin market." Austin, a market with 14.8 million square feet of suburban office space and a 4.3% suburban vacancy rate, has a diversified economy based on state government, education, technology, high technology manufacturing, software and research and development.
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 241 properties, primarily office and office/flex buildings, totaling approximately 26.1 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 in 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 different 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 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 on Form 8-K, and annual reports on Form 10-L.