JERSEY CITY, N.J., Feb. 14, 2017 /PRNewswire/ -- Mack-Cali Realty
Corporation (NYSE: CLI) today announced its 2016 and year-to-date
2017 capital markets results. The Company disposed of 36
non-strategic and underperforming commercial office assets totaling
approximately five million square feet, and a 220-unit multi-family
community, realizing gross proceeds of approximately $745 million, exceeding our guidance, with a
weighted average cap rate of approximately 5.5 percent. In
the same time period, Mack-Cali redeployed more than $500 million in capital to acquire properties
that fit the Company's strategic plan for growth.
For the fourth quarter 2016 and year-to-date 2017 office
dispositions totaled $280
million. The Company completed the strategic exit out
of the DC Metro area with the seven-building portfolio sale in
Greenbelt, Maryland, as well as
the exit out of multiple Central New
Jersey office sub-markets including Freehold, Roseland, and Cranford. Additionally,
included in the $280 million, the
Company sold subordinated/ minority interests in numerous office
assets held with Keystone Property Group throughout the Tri-State
area.
The Company continues to build on the 2016 momentum of
dispositions and is trimming the next layer of assets that the
Company now deems to be non-core. It is currently exploring
the potential of up to $450 million
of additional property sales which it anticipates could close by
mid to late 2017. These dispositions include exiting out of
the Moorestown flex portfolio in
Southern New Jersey comprised of
26 buildings totaling approximately 1.3 million square feet and
nine buildings in Northern New
Jersey's Bergen County
submarket totaling 2.2 million square feet.
The Company's acquisitions to date have been primarily focused
on transit-based locations including Metropark and the waterfront
markets encompassing Jersey City,
Hoboken, and Weehawken/West New York. The yield on
these acquisitions will be accretive to earnings net of
dispositions with the ability to further increase earnings with the
roll up of rents and lease-up of vacant space in our value-add
acquisitions.
In the first quarter of 2017, the Company closed on the
acquisition of a three-building portfolio comprised of 280,000
square feet in Red Bank, New
Jersey for approximately $27
million. The portfolio is adjacent to the Company's existing
holdings of 477,000 square feet now totaling over one million
square feet in the Monmouth County
market. The Company also entered into an agreement to
purchase a prominent portfolio including three buildings totaling
575,000 square feet in the high-demand, affluent market of
Short Hills, New Jersey and three
buildings totaling 525,000 square feet in the prestigious Giralda
Farms campus in Madison, New
Jersey. With the expected completion of this acquisition,
Mack-Cali will own virtually 100 percent of the class A office
market in Short Hills, where the
rents are the highest in the state. The Giralda Farms
properties present a value-add opportunity to reposition
high-quality assets to meet the demands of today's significant
corporate users. The Morris
County office market has been the number one choice for
corporate users establishing new state-of-the-art headquarters
facilities and the Campus has attracted large, multi-national
pharmaceutical and other Fortune 500 companies.
"As a result of refining our office portfolio, consistent with
our earnings and debt range, we continue to increase our profit
margins by creating operating efficiencies with reduced expenses,
higher rents, and increased occupancy," said Michael J. DeMarco, Mack-Cali President. "This positions us to
better focus on our high-growth markets and reposition these assets
by introducing robust amenity programs that will drive demand and
produce higher rents. We believe we are well on our way to owning a
totally class A portfolio."
Regarding the multi-family side of the business, the Company
continues to streamline and build on its platform along the
Waterfront, starting with the purchase of the remaining 50 percent
joint venture interest a development site on the Jersey City
Waterfront known as Plaza 8/9 for $57.1
million funded with a combination of $14.2 million cash and the issuance of Preferred
Operating Units. With the ability to accommodate up to 1.2
million square feet of residential or office, this is the most
valuable and prestigious development site in Jersey City. Additionally, an agreement has
been reached to purchase its partners' 85 percent joint venture
interest in Monaco, a 523-unit
multi-family, high-rise community in Jersey City. This
purchase will be completed with the assumption of existing debt,
cash, and the issuance of Preferred Operating Units.
Furthermore, the Company is finalizing terms to sell its minority
interest in the Estuary located in Weehawken, New Jersey.
"The net result of these activities increases our development
potential and stable cash flow from our multi-family platform,"
said Michael J. DeMarco, "We also
continue to simplify our NAV and balance sheet by reducing our
minority and subordinated joint venture interests which have
decreased from eleven positions to two."
About Mack-Cali Realty Corporation
Mack-Cali Realty Corporation is a fully integrated,
self-administered, self-managed real estate investment trust (REIT)
providing management, leasing, development, and other
tenant-related services for its two-platform operations of
waterfront and transit-based office and luxury multi-family assets.
Mack-Cali provides its tenants and residents with the most
innovative communities that empower them to re-imagine the way they
work and live.
Additional information on Mack-Cali Realty Corporation and the
commercial real estate properties and multi-family residential
communities available for lease can be found on the Company's
website at www.mack-cali.com.
Statements made in this press release may be forward-looking
statements within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended. Forward-looking statements can be
identified by the use of words such as "may," "will," "plan,"
"potential," "projected," "should," "expect," "anticipate,"
"estimate," "target," "continue," or comparable terminology. Such
forward-looking statements are inherently subject to certain risks,
trends and uncertainties, many of which the Company cannot predict
with accuracy and some of which the Company might not even
anticipate, and involve factors that may cause actual results to
differ materially from those projected or suggested. Readers are
cautioned not to place undue reliance on these forward-looking
statements and are advised to consider the factors listed above
together with the additional factors under the heading "Disclosure
Regarding Forward-Looking Statements" and "Risk Factors" in the
Company's Annual Reports on Form 10-K, as may be supplemented or
amended by the Company's Quarterly Reports on Form 10-Q, which are
incorporated herein by reference. The Company assumes no obligation
to update or supplement forward-looking statements that become
untrue because of subsequent events, new information or
otherwise.
Contacts:
|
Anthony
Krug
Mack-Cali Realty
Corporation
Chief Financial
Officer
(732)
590-1030
tkrug@mack-cali.com
|
Ilene
Jablonski
Mack-Cali Realty
Corporation
Senior Vice
President, Marketing
(732)
590-1528
ijablonski@mack-cali.com
|
Deidre
Crockett
Mack-Cali Realty
Corporation
Director of Investor
Relations
(732)
590-1025
dcrockett@mack-cali.com
|
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SOURCE Mack-Cali Realty Corporation