Mack-Cali Agrees to Sell Office/Flex Portfolio for $487.5M as Part of Company Transformation
JERSEY CITY, N.J. — Mack-Cali Realty Corp. (NYSE: CLI) has entered into two agreements to sell its 56-building office/flex portfolio to RMC Acquisition Entity LLC, an affiliate of the Robert Martin Company LLC, for $487.5 million. The properties are situated in Elmsford, Hawthorne, Yonkers and Tarrytown, N.Y.; and Stamford, Conn.
The sale of the portfolio is expected to close early in the second quarter of this year.
Mack-Cali has been gradually selling off pieces of its flex/warehouse business. In 2015, the Jersey City-based company announced plans to sell up to $800 million worth of real estate it owns to become an owner, manager and developer of office and multifamily properties in select waterfront and transit-oriented markets throughout the Northeast.
Proceeds from the latest sale will go toward paying down debt from Mack-Cali’s $263.5 million purchase of Soho Lofts, a 377-unit apartment community in Jersey City, situated about one mile from the Hudson River.
“The sale of our office/flex portfolio substantially completes our strategic repositioning,” says Michael DeMarco, CEO of Mack-Cali. “Mack Cali’s evolution to a waterfront-centric office and residential landlord is complete.”
As part of its disposition strategy, the company in January sold Elmsford Distribution Center, a six-building, 386,000-square-foot industrial park in Elmsford, for $70.3 million.
Mack-Cali’s stock price closed Monday at $20.90 per share, up from $17.52 per share a year ago.
— Alex Tostado