EDISON, NJ—Mack-Cali Realty Corp. says that during the first quarter it reached agreements to sell assets in Washington, DC and Manhattan for approximately $365.5 million. The sales are part of the firm's $750 million goal for dispositions outlined last year in the company's strategic plan and represent an exit from these markets.
As previously reported by GlobeSt.com, Mack-Cali is exiting non-core markets in order to pay down debt, fund capital expenditures, and increase holdings in waterfront and transit-based locations, if available, as well as renovate and reposition existing assets.
“These deals bring us halfway to our goal of $750 million in dispositions. We are proud to have made this much progress so early in the year,” says Michael J. DeMarco, Mack-Cali president. “With these sales the company is well positioned to push ahead with our strategic plan and ultimately to return significant value for our investors.”
The properties sold were:
- 125 Broad Street, New York, NY: Mack-Cali signed a contract to sell the company's ownership in the building for approximately $202 million.
- 1201 Connecticut Avenue, NW, Washington, DC: The company signed a contract to sell the building for approximately $93 million. GlobeSt.com's Erika Morphy reported earlier this month that sources say the buyer is Japanese investor Unizo Holdings.
- 1400 L Street, NW, Washington, DC: Mack-Cali signed an agreement to sell this property for approximately $70.5 million. Morphy reported March 1 that The Meridian Group was buying the property.
The sales are still subject to closing conditions and covenants, but the company expects $400 million in total sales to close by June 2016, and an additional $350 million to be completed by October 2016.
EDISON, NJ—Mack-Cali Realty Corp. says that during the first quarter it reached agreements to sell assets in Washington, DC and Manhattan for approximately $365.5 million. The sales are part of the firm's $750 million goal for dispositions outlined last year in the company's strategic plan and represent an exit from these markets.
As previously reported by GlobeSt.com, Mack-Cali is exiting non-core markets in order to pay down debt, fund capital expenditures, and increase holdings in waterfront and transit-based locations, if available, as well as renovate and reposition existing assets.
“These deals bring us halfway to our goal of $750 million in dispositions. We are proud to have made this much progress so early in the year,” says Michael J. DeMarco, Mack-Cali president. “With these sales the company is well positioned to push ahead with our strategic plan and ultimately to return significant value for our investors.”
The properties sold were:
- 125 Broad Street,
- 1201 Connecticut Avenue, NW, Washington, DC: The company signed a contract to sell the building for approximately $93 million. GlobeSt.com's Erika Morphy reported earlier this month that sources say the buyer is Japanese investor Unizo Holdings.
- 1400 L Street, NW, Washington, DC: Mack-Cali signed an agreement to sell this property for approximately $70.5 million. Morphy reported March 1 that The Meridian Group was buying the property.
The sales are still subject to closing conditions and covenants, but the company expects $400 million in total sales to close by June 2016, and an additional $350 million to be completed by October 2016.
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Steve Lubetkin
Steve Lubetkin is the New Jersey and Philadelphia editor for GlobeSt.com. He is currently filling in covering Chicago and Midwest markets until a new permanent editor is named. He previously filled in covering Atlanta. Steve’s journalism background includes print and broadcast reporting for NJ news organizations. His audio and video work for GlobeSt.com has been honored by the Garden State Journalists Association, and he has also been recognized for video by the New Jersey Chapter of the Society of Professional Journalists. He has produced audio podcasts on CRE topics for the NAR Commercial Division and the CCIM Institute. Steve has also served (from August 2017 to March 2018) as national broadcast news correspondent for CEOReport.com, a news website focused on practical advice for senior executives in small- and medium-sized companies. Steve also reports on-camera and covers conferences for NJSpotlight.com, a public policy news coverage website focused on New Jersey government and industry; and for clients of StateBroadcastNews.com, a division of The Lubetkin Media Companies LLC. Steve has been the computer columnist for the Jewish Community Voice of Southern New Jersey, since 1996. Steve is co-author, with Toronto-based podcasting pioneer Donna Papacosta, of the book, The Business of Podcasting: How to Take Your Podcasting Passion from the Personal to the Professional. You can email Steve at [email protected].
