Mack-Cali Completes Acquisition of Office Complex in D.C. Market
03/02/2006 Category: Acquisitions
Acquisition of Capital Office Park in Greenbelt, Maryland Enhances Presence in D.C. Market
Cranford, New Jersey—March 2, 2006—Mack-Cali Realty Corporation (NYSE: CLI) today announced that it has completed its acquisition of all the interests in Capital Office Park, a seven-building class A office complex totaling approximately 842,300 square feet in Greenbelt, Maryland, for approximately $161.7 million.
In addition to the assumption of approximately $63.2 million of mortgage debt, Mack-Cali issued 1,942,334 common operating partnership units in Mack-Cali Realty, L.P. valued at $87.4 million, and paid the balance in cash. The agreement also provides Mack-Cali the option to acquire approximately 43 acres of adjacent land sites to accommodate the development of up to 600,000 square feet of office space for $13 million.
Capital Office Park is 83.9% leased to 88 tenants. Major tenants include the Hewlett-Packard Company (NYSE: HPQ), the U.S. General Services Administration, Verizon Communications, Inc. (NYSE: VZ), L-3 Communications Titan Corporation (NYSE: LLL), Joseph Greenwald & Laake, P.A., and Lockheed Martin Corporation (NYSE: LMT).
Mitchell E. Hersh, president and chief executive officer of Mack-Cali, commented, "With this transaction, Mack-Cali has acquired one of the region's top office complexes while tripling its holdings in this very strategic Mid-Atlantic market."
Nicholas C. Pappas of Eastdil Realty Company, L.L.C. represented the seller in the 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 currently owns or has interests in 277 properties, primarily office and office/flex buildings located in the Northeast, totaling approximately 30.9 million square feet. The properties enable the Company to provide a full complement of real estate opportunities to its diverse base of approximately 2,300 tenants. Additional information on Mack-Cali Realty Corporation is available on the Company's website at www.mack-cali.com.
Statements made in this press release may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can be identified by the use of words such as "may," "will," "plan," "should," "expect," "anticipate," "estimate," "continue," or comparable terminology. Such 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, and involve factors that may cause actual results to differ materially from those projected or suggested. Readers are cautioned not to place undue reliance on these forward-looking statements and are advised to consider the factors listed above together with the additional factors under the headings "Disclosure Regarding Forward-Looking Statements" and "Risk Factors" in the Company's 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, new information or otherwise.