Mack-Cali Realty Corporation to Acquire AT&T Office Property in San Francisco

05/03/1999 Category: Acquisitions

CRANFORD, NJ--May 3, 1999--Mack-Cali Realty Corporation today announced it has signed a contract to purchase from AT&T Corporation 795 Folsom Street, a 184,000 square-foot class A office property in San Francisco, for $34 million.

AT&T, which built and has occupied the entire building since 1977, will lease back two floors totaling 63,278 square feet of the six-story property. The property is situated across from the Moscone Convention Center at the corner of Fourth and Folsom Streets in the Yerba Buena submarket. San Francisco is considered one of the strongest office markets in the country.

Commenting on the acquisition, Mitchell E. Hersh, chief executive officer, stated, "We value our long-term national relationship with AT&T and we are pleased to have acquired this exceptional property. We look forward to repositioning this asset in this very exciting market."

795 Folsom Street joins two other properties operated by Mack-Cali in San Francisco--the Phelan Building, a 267,400 square-foot historic property, and Convention Plaza, a 305,000 square-foot office property, both just blocks away from the Folsom Street building. Upon closing of the Folsom Street transaction, Mack-Cali's holdings in the San Francisco central business district (CBD) area will total 756,400 square feet.

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.

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.