NEW YORK CITY—Just in time for Mack-Cali president and CEO Mitchell Hersh's departure from the company this month, leading industry executive Mitch Rudin has emerged as the most likely successor to the position.
A well-placed industry source tells GlobeSt.com—and the Wall Street Journal reports—that Rudin, who took the industry by surprise last June when he stepped down from Brookfield Office Properties—will be recommended by a search committee to Mack-Cali's board as the successor for Mitchell Hersh, who was expected to step down from his post during the company's annual board meeting earlier this month.
In advance of that meeting, which was scheduled to take place on May 11th, Mack-Cali said in a prepared statement that it had identified “a number of highly qualified candidates” and expected to announce its transition plan in the coming. A Mack-Cali spokesperson declined to comment to GlobeSt.com.
Rudin joined Brookfield in 2011 and was a pivotal part of the re-development and re-leasing of Brookfield Place, Previously, he served at CBRE Group as president of US brokerage operations from 2003 to 2004 and then as tri-state region president from 2004 to 2011.
At Mack-Cali, Rudin has a steep hill to climb. The firm, which is best known for owning suburban office buildings in the Northeast, according to the Journal, has come under fire for its recent foray into residential real estate.
In 2012, Mack-Cali purchased the development and management business of Roseland Partners for nearly $135 million. Mack-Cali executives say the acquisition was made in the hopes of gaining a profit from increased apartment demand, particularly in downtown areas with strong public transportation.
But since the shift, Mack-Cali's stock has underperformed that of comparable office-building owners, according to John Bejjani, analyst with Green Street Advisors. Adding insult to injury, the residential strategy has been criticized because Mack Cali has increased its debt load to pay for it.
Mack-Cali has a portfolio of 30.9 million square feet of office across NJ, CT, MA, NY, DC, MD, VA and PA, along with 5,890 multifamily units—through its Roseland partnership—in NJ, DC and its northern Virginia suburbs, along with MA.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
