Mack-Cali Buys Liberty Towers for $409M in 1031 Exchange
Also part of the 1031 exchange are the soon to-be-completed sales of the Chase at Overlook Ridge and the Alterra at Overlook Ridge in Boston.
JERSEY CITY, NJ—Mack-Cali Realty Corp. reports it has completed the first transaction in a 1031 exchange that involves the acquisition of a well-known multifamily property here and the sale of two residential properties in Boston for combined value total of $820 million.
The first completed deal in the 1031 exchange is the company’s $409-million purchase of the 648-unit Liberty Towers residential property in Jersey City. That deal, which was initially financed with a $232-million mortgage and the company’s line of credit, closed at the end of the third quarter.
Also part of the 1031 exchange are the soon to-be-completed sales of the Chase at Overlook Ridge and the Alterra at Overlook Ridge in Boston. The sale of the Overlook Ridge properties to Rockpoint Group, LLC of Boston for approximately $411.5 million is expected to close by the end of this month.
The Overlook Ridge properties are under definitive contract to be sold to Rockpoint Group. The properties, developed by Mack-Cali’s Roseland Residential Trust subsidiary, were completed in 2014 and 2008, respectively. Proceeds from the sale of the Overlook properties will be used to fund the company’s purchase of Liberty Towers and to repay the company’s line of credit.
Mack-Cali CEO Michael J. DeMarco says of the deals, “We are pleased to further add to our portfolio on the highly desirable Jersey City waterfront through the efficient sale of a portion of our Boston multifamily properties and the purchase of Liberty Towers. This transaction allows us to further concentrate our capital on the waterfront where we believe our market share and operating familiarity with the community should allow us to enhance the performance of Liberty Towers.”
The Liberty Towers property features a yoga studio, a spin studio, a rooftop pool, a boxing gym and an on-site concierge. The property also includes convenience retail including a pharmacy, a florist and a nail salon.
Mack-Cali also announced that it expects to receive the $2.6 million of proceeds associated with the sale of its Urby tax credit in the fourth quarter of 2019.