NORWALK, CT-Mack-Cali Realty Corp. in its continuing efforts to shed itself of non-core assets, reports it has sold the 40 Richards Ave., here for $16.5 million to The Davis Companies of Boston.

The deal for the Edison, NJ-based REIT's sole asset in Norwalk, calculates out to approximately $112 per square foot, which Davis Cos. says represents a significant discount to replacement cost. The seven-story, 145,487-square-foot property is 64% occupied. Matthew F. Keefe of HK Group represented Mack-Cali in the transaction.

Mitchell E. Hersh, president and chief executive officer of Mack-Cali, states, “40 Richards Ave. was Mack-Cali's sole asset in Norwalk and was no longer consistent with our overall strategy. This was the right time to sell given market conditions and we look forward to redeploying the proceeds into more strategic investment opportunities.”

Davis officials say the company, which has a regional office in Norwalk, plans to undertake a capital improvement plan to upgrade the café, landscaping, and bathrooms, as well as add a gym, and implement other improvements.

“We have been targeting opportunities to acquire well located, high quality office properties, which are underperforming, and we are very excited about our recent acquisition of 40 Richards Ave.,” says Steve Rice, regional director of acquisitions for The Davis Companies. “Our low investment basis will allow us to offer very attractive rental rates and tenant improvement packages to potential tenants, and our capital improvement plan should significantly enhance the building's appeal.”