Mack-Cali Sells Seven Office Properties in the West and Southwest for $80 Million
06/06/2002 Category: Dispositions
Cranford, New Jersey—June 6, 2002--Mack-Cali Realty Corporation (NYSE: CLI) today announced it has sold seven office properties in the West and Southwest for approximately $80 million. The properties, totaling over 700,000 square feet, are located in Houston, Texas; Denver, Colorado; and Roseville, California.
The properties were sold in three separate transactions:
- Mack-Cali sold three Houston office properties to Parkway Properties LP (NYSE: PKY) for approximately $27.2 million. The properties consist of 1717 St. James Place, a 109,600 square-foot, 81.0%-leased building; 5300 Memorial Drive, a 155,000 square-foot building that is 87.3% leased; and 10497 Town & Country Way, a 148,400 square-foot, 83.9%-leased building. Parkway Properties is a real estate investment trust based in Jackson, Mississippi.
- 750 South Richfield Street in Aurora, Colorado, was sold to Wells Real Estate Funds, a national real estate investment management firm based in Atlanta, for approximately $21.1 million. The 108,240 square-foot office building is leased to TRW, Inc.
- Mack-Cali's joint venture partnership with Highridge Partners sold Lava Ridge Business Center in Roseville, California, a 100%-leased, three-building office complex totaling 183,200 square feet, for $31.7 million. Lava Ridge, which was developed by the partnership in 2000, was sold to Property Reserve, Inc.
Mack-Cali also announced the termination of a contract to sell 17 buildings in Denver. The Company will continue to own and operate these properties until market conditions in Denver improve.
Mitchell E. Hersh, chief executive officer of Mack-Cali, commented, "The property sales announced today are consistent with our overall strategy of exiting non-core markets in the West and Southwest and strengthening our prominent position in our core Northeast and Mid-Atlantic markets." He added, "While we still intend to exit the Denver market, we believe it to be in the best interests of our Company and shareholders to sell the balance of our Denver portfolio under more favorable market conditions, when full value can be realized."
Since the initiation in September 2000 of its program to sell non-core assets, Mack-Cali has sold 25 wholly-owned and joint venture properties totaling over 3 million square feet for over $375 million. In a transaction announced just three weeks ago, the Company sold four Dallas properties totaling 489,000 square feet for $34 million. Property sales have also included office buildings in San Antonio, Houston, Austin, Des Moines, Omaha, San Diego and Los Angeles, as well as the Company's two multi-family properties. During the period, Mack-Cali has purchased 10 office properties totaling over 900,000 square feet for approximately $97 million in core markets in the Northeast including Northern and Central New Jersey and Westchester County, New York.
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 257 properties, primarily office and office/flex buildings located in the Northeast, totaling approximately 27.5 million square feet. The properties enable the Company to provide a full complement of real estate opportunities to its diverse base of approximately 2,000 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 Private Securities Litigation Reform Act of 1995 and the federal securities laws. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to, without limitation, the Company's future economic performance, plans and objectives for future operations and projections of revenue and other financial items. Forward-looking statements can be identified by the use of words such as "may," "will," "should," "expect," "anticipate," "estimate," "continue" or comparable terminology. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions at the time made, it can give no assurance that its expectations will be achieved. Forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate. Future events and actual results, financial and otherwise, may differ materially from the results discussed in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements. Among the risks, trends and uncertainties are changes in the general economic conditions, including those affecting industries in which the Company's principal tenants compete; any failure of the general economy to recover timely from the current economic downturn; the extent of any tenant bankruptcies; the Company's ability to lease or re-lease space at current or anticipated rents; changes in the supply of and demand for office, office/flex and industrial/warehouse properties; changes in interest rate levels; changes in operating costs; the Company's ability to obtain adequate insurance, including coverage for terrorist acts; 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. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.