Mack-Cali Acquires 1.1 MSF Office Portfolio in New Jersey for $368M
Six office properties are included in the portfolio. Pictured is 51 JFK Parkway in Short Hills, N.J.
MADISON AND SHORT HILLS, N.J. — Mack-Cali Realty Corp. (NYSE: CLI) has acquired a 1.1 million-square-foot office portfolio that includes six Class A properties in northern New Jersey for $368 million. The sales price of the portfolio is one of the highest ever recorded statewide in the office sector, according to a news release.
RXR Realty LLC sold the portfolio, which includes 1, 3 and 7 Giralda Farms in Madison and 51, 101 and 103 JFK Parkway in Short Hills. The portfolio is 91 percent leased to tenants such as KPMG, Wells Fargo, Merrill Lynch, UBS, Dun & Bradstreet, Investors Bank, Citibank, Franklin Mutual Advisors, Pfizer and Prudential.
All of the properties are located in the Route 24 corridor and benefit from a strong retail amenity base, including The Mall at Short Hills, the downtown areas of Morristown, Madison and Summit and the retail offerings along Route 10.
“This acquisition signifies Mack-Cali’s substantially expanded presence in the affluent Short Hills submarket — positioning us as the owner of nearly all of the Class A office space, as well as some of the most premier assets in the Madison submarket,” said Michael J. DeMarco, president of Mack-Cali, in a press release. “This transaction exemplifies our strategy of owning only the best assets in strong markets that offer tenants state-of-the-art office spaces with a suite of first-class amenities.”
Jose Cruz, Kevin O’Hearn, Michael Oliver, Stephen Simonelli, Marc Duval, Michael Tepedino and Andrew Scandalios of HFF represented the seller and procured the buyer.
Jersey City-based Mack-Cali is a publicly traded real estate investment trust that provides management, leasing, development and other tenant-related services for its two-platform operations of waterfront and transit-based office and luxury multifamily assets. The stock closed at $27.29 per share at the close of business on Thursday, March 16, up from $23.13 per share a year ago.
RXR manages 87 commercial real estate properties and investments comprising 23.1 million square feet located in the New York metropolitan area. The assets are valued at approximately $12.7 billion.