Mack-Cali Acquires Balance of Interests in New Jersey Office Complex
03/14/2005 Category: Acquisitions
Cranford, New Jersey—March 14, 2005—Mack-Cali Realty Corporation (NYSE: CLI) today announced that it has acquired the remaining 37.5% interests in One River Centre, a three-building, class A office complex totaling approximately 460,000 square feet located in Middletown, New Jersey, giving the Company a 100% ownership interest in the complex. The interests were acquired for approximately $10.5 million.
In November 2004, Mack-Cali acquired a controlling interest in the property through the conversion of its mezzanine loan provided on the property in 2003. When the loan was provided, Mack-Cali was engaged by the owner to provide property management and leasing services for the complex, which was then 52.2% leased. The complex is now 90.4% leased.
Mitchell E. Hersh, president and chief executive officer of Mack-Cali, commented, "Our transactions at this property demonstrate our ability to capitalize on opportunity and create value for our shareholders. Through our successful lease up, we were able to convert our initial low-risk investment into what is today full ownership of a prime office complex in one of the state's top submarkets."
One River Centre 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 30.1 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.