Mack-Cali Acquires Controlling Interest in New Jersey Office Property
12/01/2004 Category: Acquisitions
Cranford, New Jersey-December 1, 2004-Mack-Cali Realty Corporation (NYSE: CLI) today announced that it has acquired a 62.5% interest in One River Center, a three-building, class A office complex totaling approximately 460,000 square feet located in Middletown, New Jersey.
The interest was acquired by Mack-Cali through the exercise of its equity conversion option on its mezzanine loan provided on the property in 2003. The loan balance at the time of conversion was $13.0 million.
When the loan was provided in 2003, Mack-Cali was engaged by the owner to provide property management and leasing services for the complex, which was 52.2% leased at the time. The complex is now 84.5% leased.
Mitchell E. Hersh, president and chief executive officer of Mack-Cali, commented, "This transaction allowed us to participate in this property with minimal risk during its lease-up, and to convert our loan position into an equity interest in the property as it became more stabilized." Hersh added, "In addition, this transaction further enhances our already strong position in Monmouth County, one of the top sub-markets in the state."
One River Center consists of two four-story, 120,000 square-foot buildings and one three-story, 220,000 square-foot building. The property, situated on a 35.2-acre site, is located near exit 109 of the Garden State Parkway.
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 269 properties, primarily office and office/flex buildings located in the Northeast, totaling approximately 29.2 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.