Mack-Cali Sells Jersey City Office Property for $194 Million
09/29/2003 Category: Dispositions
Cranford, New Jersey—September 29, 2003—Mack-Cali Realty Corporation (NYSE: CLI) today announced that through a joint venture partnership it has sold Harborside Financial Center Plaza 10, a 577,575 square-foot class A office property in Jersey City, New Jersey, for $194 million. The 19-story building, which is fully leased to Charles Schwab & Co., was sold to an institutional real estate buyer. Mack-Cali will continue to manage the property, which is part of its Harborside Financial Center complex on the Jersey City waterfront. Harborside Plaza 10 was honored earlier this year with a "New Good Neighbor" award presented by the New Jersey Business and Industry Association.
Mack-Cali received net proceeds of approximately $165 million from the sale, which it intends to use primarily to repay outstanding borrowings under its revolving credit facility. Harborside Plaza 10 was owned by a joint venture between Mack-Cali and Columbia Development.
Mitchell E. Hersh, chief executive officer of Mack-Cali, commented, "As a leading owner and operator of office properties on the Jersey City waterfront, we remain fully committed to this market." He added, "This transaction allows us to capitalize on an attractive investment sales market and realize the significant value created through the development of this superb property." After the sale, Mack-Cali continues to own a 100 percent interest in five office buildings totaling more than 3 million square feet of class A office space at Harborside Financial Center.
The joint venture continues to own a land site adjacent to Harborside Plaza 10 that can accommodate the development of over 1.2 million square feet of office space. In addition, Mack-Cali's wholly-owned land at Harborside can accommodate the development of 3.1 million square feet of office space.
Andrew Dady and Jonathan Mechanic of Fried Frank represented the joint venture partnership in this transaction.
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 265 properties, primarily office and office/flex buildings located in the Northeast, totaling approximately 28.5 million square feet. The properties enable the Company to provide a full complement of real estate opportunities to its diverse base of approximately 2,100 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, including Section 21E of the Securities Exchange Act of 1934. 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 and Section 21E of the Securities Exchange Act of 1934. 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.