Mack-Cali Sells NJ Office Portfolio for $254M
The firm has sold its four-property, 945,906-square-foot, Metropark portfolio to Opal Holdings.
Mack-Cali Realty Corp. has sold its four-property, Metropark portfolio for $254 million to Opal Holdings.
The four office buildings comprise 945,906 square feet of space, located at 99 and 101 Wood Ave. South in Iselin, NJ, and 333 and 343 Thornall St. in Edison, NJ.
The properties recently underwent capital improvement projects. The portfolio is currently more than 90% leased to blue chip tenants.
The disposition represents one of the largest suburban office transactions to be completed this year.
“This sale marks a key milestone in our strategy to sell non-core suburban office assets, which we expect to substantially complete in the near future,” states Mahbod Nia, CEO of Mack-Cali.
Mack-Cali intends to use the proceeds of the sale to pay down its unsecured corporate debt during Q2 of 2021.
“We have made significant strides in executing our plan to divest non-core assets at a rapid pace,” says Ricardo Cardoso, EVP and chief investment officer at Mack-Cali. ”Most importantly, we have not sacrificed value in these dispositions, and are continuing to make progress on finalizing sale terms on the remainder of our non-core commercial assets.”
Cardoso adds, “This deal was an enormous collaboration among various teams, and I am thrilled with the partnership and joint efforts which brought it to completion. Opal Holdings moved fast to take this opportunity to add to their Metropark holdings and worked hard to successfully close.”
Leading the transaction was Cushman & Wakefield’s New York metropolitan area capital markets team of Andy Merin, David Bernhaut, Gary Gabriel, Frank DiTommaso and Seth Zuidema, alongside Cushman & Wakefield’s New York institutional investment sales team of Adam Spies and Kevin Donner, as well as Cushman & Wakefield leasing specialists, Todd Elfand and Kevin Carton.
“The sale of this class A portfolio will potentially be one of the largest suburban office trades New Jersey sees this year,” says Andy Merin, Cushman & Wakefield’s executive vice chairman. “We have a longstanding relationship with Mack-Cali, and we appreciate their trust in our team’s ability to continually deliver results that help further execute their greater business plan.”