Mack-Cali Realty and SJP Properties Announce New Jersey Development Venture
03/24/1999 Category: Leasing and Development
CRANFORD, NJ--March 24, 1999--Mack-Cali Realty Corporation (NYSE: CLI) and SJP Properties today announced that they have entered into a joint venture agreement to develop two class A office projects in central New Jersey.
The joint venture is preparing to break ground on a site previously controlled by SJP Properties. This project, Liberty Corner Corporate Center, will be a $23 million, 135,000 square-foot class A office building located in Liberty Corner, off Interstate 78 in Bernards Township. Mack-Cali will provide construction financing for the project, and upon completion will fund the equity required to repay the construction financing and obtain a controlling interest in the venture. The venture also has plans to develop Three Vaughn Drive, a 100,000 square-foot office building neighboring the train station in Princeton and currently owned by Mack-Cali.
Mack-Cali and SJP view this agreement as the beginning of a successful relationship involving additional development projects in other select New Jersey submarkets where the companies have a significant presence.
Mitchell E. Hersh, president and chief operating officer of Mack-Cali, stated, "This transaction allows Mack-Cali to work alongside a proven real estate developer in our core New Jersey markets. Our depth in development, leasing and management, combined with those of SJP Properties, make for a formidable alliance." Mr. Hersh added, "The pooling of development sites covered under the agreement will allow Mack-Cali greater regional influence with a continuation of orderly new development in key New Jersey submarkets."
Steven J. Pozycki, president of SJP Properties, commented, "We are proud to form an alliance with Mack-Cali, a true industry leader. Both our organizations have a long and successful history in the region, one that has been earned over time through the consistent ability to deliver projects on time and on budget. In combining our considerable professional resources and knowledge, we have created a partnership that will provide well-planned, high-quality products that offer innovative solutions to exceed the needs of today's corporate tenants."
Based in Parsippany, New Jersey, SJP Properties is a developer, investor, owner and manager of class A corporate campuses and also specializes in developing build-to-suit, headquarter-quality facilities. The company's client base consists primarily of major multi-national and national companies with a strong presence in the tri-state region. SJP Properties has an extensive portfolio in New York, New Jersey and eastern Pennsylvania metropolitan markets. SJP has developed, and currently owns and manages, over 10 million square feet of class A commercial office space and maintains an inventory to accommodate an additional 12 million square feet of developable projects. Additional information on SJP Properties is available on its website at www.sjpproperties.com
Mack-Cali Realty Corporation is a fully-integrated, self-administered, self-managed real estate investment trust (REIT) providing management, leasing, development, construction and other tenant-related services for its class A real estate portfolio. Mack-Cali owns or has interests in 253 properties, primarily office and office/flex buildings, totaling approximately 28 million square feet, located in 12 states and the District of Columbia. The properties, which are primarily located in the Northeast, enable the Company to provide a full complement of real estate opportunities to its diverse base of over 2,400 tenants. Additional information on Mack-Cali Realty Corporation is available on the Company's website at www.mack-cali.com.