Mack-Cali and Highridge Partners Announce Sale of California Property

08/31/2004 Category: Dispositions

Cranford, New Jersey—August 31, 2004—Mack-Cali Realty Corporation (NYSE: CLI) and Highridge Partners today announced that Pacific Plaza, a mixed-use development in Daly City, California, has been sold for $143 million. A joint venture of Mack-Cali and Highridge Partners held a 50% interest in the property, which was sold to RREEF America L.L.C.

The property was developed by the joint venture in two phases. Pacific Plaza I, a complex consisting of 369,480 square feet of office and retail space, plus a 925-car parking garage, was completed in 2001. Pacific Plaza II, completed in 2002, consists of a 20-screen cinema, approximately 22,740 square feet of retail space, and a 820-car parking garage. The joint venture maintains control over an option on 2.5 acres of developable land at the site.

Mitchell E. Hersh, president and chief executive officer of Mack-Cali, commented, "We're pleased to create value for our shareholders by selling Pacific Plaza. We look forward to redeploying the proceeds of this transaction into opportunities in our core Northeast and Mid-Atlantic markets."

The development of Pacific Plaza was managed by Summit Commercial Properties, an affiliate of Highridge Partners. Headquartered in Los Angeles, Highridge Partners has acquired, developed and managed a real estate portfolio in the past decade valued at more than $6 billion.

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 268 properties, primarily office and office/flex buildings located in the Northeast, totaling approximately 29.6 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

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.