Mack-Cali to Develop Pre-leased Office Building With The PRC Group
03/23/2006 Category: Leasing and Development
Red Bank, New Jersey Building 100% Pre-leased to Hovnanian Enterprises
Cranford, New Jersey—March 23, 2006—Mack-Cali Realty Corporation (NYSE: CLI) today announced that it has entered into a joint venture agreement with The PRC Group to develop a 92,878 square-foot class A office building in Red Bank, New Jersey. The entire building has been pre-leased to Hovnanian Enterprises, Inc. (NYSE: HOV) on a triple net basis for 10 years.
The building will be part of a two-building complex, known as Red Bank Corporate Plaza, to be developed by Mack-Cali. Expected to be completed by the third quarter of 2007, the building includes 88,000 square feet of office space, 4,878 square feet of retail space, and a four-story parking garage. The second building in the complex, a two-story, 18,560 square-foot class A office building, will be developed at a later date.
The property will be developed on a 3.4-acre land site located at 141 West Front Street in downtown Red Bank contributed to the joint venture by The PRC Group. Mack-Cali will serve as the leasing agent and co-management agent for the complex. No broker was involved in the Hovnanian transaction.
Mitchell E. Hersh, president and chief executive officer of Mack-Cali, stated, "This build-to-suit project demonstrates Mack-Cali's commitment to strategic, controlled development, as we expand our presence into the vibrant Red Bank submarket and further build on our holdings in Monmouth County." He added, "We look forward to partnering with The PRC Group on this exciting venture, and to enhancing our relationship with Hovnanian Enterprises, which is both a Mack-Cali tenant and a potential co-developer with us on a transit village project."
Joel S. Brudner, executive vice president and chief financial officer of The PRC Group, commented, "With growing demand for class A office space in downtown Red Bank, this is an excellent opportunity to combine our resources with Mack-Cali to develop this premier office property." He added, "Besides its excellent downtown location, Red Bank Corporate Plaza will be one of just a handful of downtown properties offering suburban-type parking ratios."
Hovnanian Enterprises, Inc., based in Red Bank, New Jersey, is a leading residential developer and a publicly-traded real estate investment trust.
The PRC Group, based in West Long Branch, New Jersey, is a multi-faceted real estate owner, developer and services provider of residential and commercial properties.
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," "should," "expect," "plan," "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.