The new owner is an institutional real estate buyer, which Mack-Cali officials declined to identify, citing contractual obligations. According to a published report, however, the new owner is New York-based iStar Financial Inc. In the transaction, the buyer was represented by Andrew Dady and Jonathan Mechanic of Fried Frank.

The 19-story building is currently fully leased to discount broker Charles Schwab & Co., although that firm's ongoing difficulties have prevented it from actually occupying much of the space. Mack-Cali will continue to manage the property, which is part of the company's larger Harborside Financial Center.

"As an owner and operator of office properties on the Jersey City waterfront, we remain fully committed to this market," says Mitchell E. Hersh, Mack-Cali's CEO. "This transaction allows us to capitalize on an attractive investment sales market and to realize the value created through the development of this property."

The company's net take on the sale is about $165 million, which it intends to use primarily to repay outstanding borrowings under its revolving credit facility, according to Hersh.

Mack-Cali is far from doing a disappearing act as far as its substantial presence at Harborside Financial Center, which sits directly across the river from Lower Manhattan. Even after the sale, the REIT continues to own a 100% interest in five office buildings totaling more than three million sf of class A space within the complex.

And the joint venture between Mack-Cali and Columbia Development continues to own a land site adjacent to Harborside Plaza 10 that can accommodate the development of more than 1.2 million sf of office space, market conditions permitting. Further, Mack-Cali's wholly owned land at Harborside is said to be able to accommodate yet another 3.1 million sf of space.

Instant Insights /

Mack-Cali Sells Harborside Plaza 10 for $194M

Related Stories

Recommended For You