Alterra at Overlook Ridge

EDISON, NJ-Continuing its focused push into the multi-family arena, Mack-Cali Realty Corp. has acquired two large apartment buildings in the Boston metropolitan area.

The Edison-based REIT has completed purchase of Alterra at Overlook Ridge IA in Boston for $61.3 million and has contracted to purchase Alterra at Overlook Ridge IB for $88.7 million. The closing on the second property is slated for early April when the current loan on the property opens for prepayment.

The buildings, currently 97.2% leased,  hold a total of 722 rental units in the master planned community of Overlook Ridge in Revere and Malden, MA. The properties are being acquired from a Prudential Insurance Company of America joint venture.

Mack-Cali’s recently acquired subsidiary, Roseland, developed Alterra IA in 2004 and Alterra IB in 2008 for the venture, and has managed the properties since completion.

The apartments offer residents resort-style amenities, including heated outdoor pools, fitness centers, lounges with billiards, business centers, cinema screening rooms, and direct-access parking garages. The Overlook Ridge community is located five miles north of downtown Boston.

The complex has convenient highway access, direct access to MBTA bus service, as well as private shuttle service.

Mitchell E. Hersh, president and CEO of Mack-Cali, said in a statement, “The acquisition of Alterra perfectly complements our recent acquisition of the real estate development and management businesses of Roseland.”

He said, “We expect to place mortgage financing on the property that will provide a cash on cash yield in excess of 9%.”

Marshall B. Tycher, co-president of Roseland, added that the property is already of the highest quality, but also includes a “value-add” opportunity. “With a planned interior cosmetic modernization, we are confident we can command today’s higher market rents,” Tycher said.

In addition to managing Alterra, Roseland developed and manages the adjacent Quarrystone and is constructing the 371-unit Highlands at Overlook Ridge in joint venture with UBS.