WEEHAWKEN, NJ-Mack-Cali Realty Corp.’s Roseland subsidiary has launched construction of a new 280-unit apartment building at the Port Imperial complex here, the company announced Wednesday. The REIT is also building a 371-unit rental building at its recently acquired Overlook Ridge property outside Boston.
RiverParc at Port Imperial will be the latest rental property developed in the southern section of the sprawling riverside complex that spans two-and-a-half miles and crosses the borders of three communities. Mack-Cali says the $100 million project has a projected initial unleveraged return of 6.5%.
RiverParc is a joint venture with the Prudential Insurance Company of America, with construction financing led by PNC and including a commitment from Wells Fargo.
Also in December, Roseland began construction of The Highlands at Overlook Ridge, in joint venture with a fund advised by UBS Global Asset Management and supported by a construction loan commitment led by Bank of America with participation by TD Bank. The apartment development will be the latest addition to the Overlook Ridge master-planned community in the Boston suburbs of Malden and Revere.
Overlook Ridge is a 92-acre community developed by Roseland before its acquisition by Mack-Cali, as the company pivoted into the multi-family market from primary concentration in office real estate.
The Edison-based REIT recently completed purchase of Alterra at Overlook Ridge IA for $61.3 million from Prudential 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 rentals. 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,