Mack-Cali Realty Corporation Completes Four Acquisitions for Approximately $70.5 Million
02/10/1998 Category: Acquisitions
CRANFORD, NJ--February 10, 1998--Mack-Cali Realty Corporation (NYSE:CLI) today announced the completion of four previously announced acquisitions in the Northeast for approximately $70.5 million.
In the largest of the acquisitions, Mack-Cali completed the initial phase of a two-tiered transaction to acquire the southern New Jersey office/flex portfolio of McGarvey Development Company. This initial phase consisted of 17 buildings containing 748,660 square feet. The purchase price was $46.2 million, which was funded with $38.2 million in cash, made available from drawing on one of the Company's credit lines, as well as the assumption of $8 million in existing mortgage debt.
The Company also completed the acquisition of 2115 Linwood Avenue, a 68,000 square-foot vacant office property in Fort Lee, New Jersey, for $5 million. The property, which was purchased at less than $74 per square foot, will be renovated and repositioned by Mack-Cali.
The acquisition of 500 West Putnam Avenue, a 121,250 square-foot class A office building in Greenwich, Connecticut, was also completed. The property was acquired for a combination of $8 million in cash, made available from one of the Company's credit lines, and the assumption of an existing $10.1 million mortgage.
In addition, the Company completed the acquisition of 10 acres of vacant land in Stamford Executive Park, in Stamford, Connecticut, for $1.3 million. The Company plans to use the land to develop a 40,000 square-foot office/flex building for Davidoff of Geneva, an existing tenant in the park. Davidoff will occupy the entire building under a 15-year lease on a triple net basis. Upon completion of the construction of this Stamford office/flex building, and including the acquisition of 500 West Putnam Avenue, Mack-Cali's holdings in the Fairfield County, Connecticut market will number six properties totaling 460,000 square feet.
Commenting on the acquisitions, Thomas A. Rizk, chief executive officer, said, "These transactions confirm our commitment to enhance Mack-Cali's dominant presence as the Northeast's super-regional REIT. We continue to pursue other attractive opportunities in our acquisition pipeline to further solidify our status as one of the top REITs in the nation."
Mack-Cali Realty Corporation, formerly 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 completed transactions and the closing of pending transactions, Mack-Cali will own 213 properties, primarily office and office/flex buildings, totaling approximately 23.2 million square feet, serving over 2300 tenants. Mack-Cali's properties are located in 10 states, primarily in the Northeast and Southwest.
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.