PARSIPPANY, NJ—Mack-Cali Realty Corp. announced the sale of its 22 Sylvan Way office property here for $96.6 million Thursday, the same morning as its first-quarter earnings report of a first-quarter loss-per-common-share of $0.17.
In the public earnings call, the REIT's executives discussed their continuing full-speed-ahead push to build the company's multi-family portfolio, financing this with sale of non-core office properties.
The 22 Sylvan Way building, net-leased long-term to Wyndam Worldwide Corp., was sold to Griffin Capital Corp. In addition to the sales price, Griffin is assuming responsibility for $7 million in future tenant improvement-allowance and commission obligations.
Mitchell E. Hersh, president and CEO of Mack-Cali, said in the morning call that Mack-Cali's proceeds from the sale calculate out to $99 million.
The Parsippany building was developed in 2009 to be the headquarters for Wyndham Worldwide, the hotel and hospitality chain. Located in the Mack-Cali Business Campus, 22 Sylvan Way is a three-story, 249,409-square-foot, class A office building that has LEED for Commercial Interiors and LEED for Existing Buildings: Operations & Maintenance Silver ratings.
Wyndham extended the lease term to coincide with the term on its recently completed headquarters expansion at the adjacent 14 Sylvan Way, also developed and owned by Mack-Cali.
Mack-Cali was represented in the transaction by Jose Cruz and Kevin O'Hearn, both of HFF.
Hersh said, “Due to the long-term lease with Wyndham, this was an excellent opportunity to monetize the value of this class A corporate headquarters. The proceeds will be reinvested into more strategic growth opportunities throughout the Northeast.”
In the morning call, Hersh noted the recent acquisition of a 220-unit multifamily property in Andover, MA, for $37.7 million as indicative of the well-situated upscale apartment buildings Mack-Cali will continue to pursue.
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