Praedium Group And Gale Acquire One Newark Center For $111 Million
12/06/2006 Category: Acquisitions
This press release was distributed by The Praedium Group LLC. For more information, please contact the company representatives listed on the release.
December 6, 2006--New York--The Praedium Group LLC and Gale Real Estate Services Company, a subsidiary of Mack-Cali Realty Corporation (NYSE: CLI), announced today the acquisition of One Newark Center for $111 million. The property was acquired from The Chubb Corporation.
One Newark Center is a 22-story, 418,027-square-foot Class-A office tower located in the heart of downtown Newark, NJ. The property includes a private membership club known as The Newark Club, which is located on the building's top floor. In addition, the investment includes a 940-car parking facility as well as an adjacent vacant commercially zoned land parcel, which may accommodate up to an additional several hundred thousand square feet of Class A office space. The property was 98.6 percent leased at the time of purchase. Current tenants include Latham & Watkins, Kirkpatrick & Lockhart, and The United States Trustees office.
"The acquisition of One Newark Center presents an opportunity to realize attractive risk-adjusted returns from one of Newark's pre-eminent office towers," said Frank Patafio, principal at The Praedium Group. "Newark has become an increasingly attractive option for businesses seeking alternatives in the tightening New York metropolitan area office market."
"Gale Real Estate Services Company is extremely pleased to be once again partnering with The Praedium Group to acquire this signature Newark office building. We are particularly proud to continue our investment in Newark, a city we have been active in for over 12 years," commented Gale President Mark Yeager.
The acquisition of One Newark Center represents Praedium's third investment with Gale. In the mid-1990s, the firms purchased Princeton Forrestal Village, a 499,585-square-foot mixed-use property in Princeton, New Jersey. Forrestal Village was sold in 1997. In 1998, the firms purchased Parkway La Mirada, a portfolio of two office buildings in California totaling 198,055 square feet. Parkway La Mirada was sold in 2002.
A subsidiary of Mack-Cali Realty Corporation, Gale Real Estate Services Company offers clients a variety of value enhancement services encompassing investments, development, leasing, asset management, property management and corporate advisory services. Additional information on Gale Real Estate Services Company is available on the company's website at www.thegalecompany.com.
The Praedium Group is a real estate investor focusing on under-performing and under-valued assets throughout North America, with over $6 billion in total investments to date in more than 250 transactions comprised of 40 million square feet of commercial space and 50,000 multi-family units. Praedium was formed in 1991 with a leading international investment bank as its sole investor.
Building on the experience and exposure gained through this original investment program, Praedium has been a sponsor of commingled real estate private equity funds since 1994. The funds sponsored by Praedium have attracted investors that include public and corporate pension funds, financial institutions, insurance companies and endowments.
Praedium is investing its most recent $700 million real estate private equity fund, Praedium Fund VI. This equity will be leveraged to acquire more than $2 billion in properties. The fund invests in mid-cap assets throughout the United States and Canada in the $10 to $70 million range, targeting multi-family, office, retail and industrial property types. Cadim, a Montreal-based real estate investor and portfolio manager, is a major shareholder of The Praedium Group. Cadim is a division of the Caisse de depot et placement du Quebec and a member of the Real Estate group of the Caisse. The Caisse is one of the world's 10 largest real estate managers among pension fund managers. For more information, please see www.praediumgroup.com.