Mack-Cali Sells Sole Asset in Nebraska
11/27/2000 Category: Dispositions
Cranford, New Jersey—November 27, 2000—Mack-Cali Realty Corporation (NYSE: CLI) today announced that as part of its ongoing program of divesting its assets in non-core markets and growing its presence in high-barrier-to-entry markets, it has sold the Brandeis Building, a 319,500 square-foot office building in Omaha, Nebraska.
The building, which was built in 1894 and was Mack-Cali's only property in Nebraska, was sold for $12.5 million to TCI Brandeis, LP. Seventy-one percent of the building is occupied by Union Pacific under a lease expiring in May, 2002. Proceeds from the sale will be used for Company investments in its core Northeast markets.
Mitchell E. Hersh, chief executive officer of Mack-Cali, commented, "The sale of the Brandeis Building is another step in executing our strategy of disposing of assets in non-strategic markets and enhancing our position in high-barrier-to-entry markets in the Northeast region. We are pleased to be able to divest this property and redeploy the proceeds of the sale into more strategic growth opportunities in our Northeast markets." The property was acquired by the Company in 1997 as part of its purchase of Patriot American Office Group.
CB Richard Ellis and Grubb & Ellis Pacific Realty represented Mack-Cali in the sale.
In conjunction with the sale, an affiliate of the Company provided a short-term $8.75 million purchase money mortgage to the buyer at an effective interest rate of 9.8%.
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 267 properties, primarily office and office/flex buildings located in the Northeast, totaling approximately 28.2 million square feet. The properties 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.