BALA CYNWYD, PA—A joint venture led byKeystone Property Group has closed on the purchaseof six office buildings in Westchester County, NY and Stamford, CTfor approximately $91.5 million from Edison, NJ-based MackCali Realty Corp.

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The closing completes a portfolio transaction announced earlierthis year between Keystone and Mack-Cali to form various jointventures to acquire a portfolio of office properties that Mack-Caliowns in Northern New Jersey, New York and Connecticut.

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Earlier this year, Keystone closed on five New Jersey officeproperties as part of the portfolio deal with Mack-Cali, consistingof 17-17 Route 208 North in Fair Lawn, 412 Mt. Kemble Ave. inMorris Township, 30 Knightsbridge Road in Piscataway, 470 ChestnutRidge Road in Woodcliff Lake, and 530 Chestnut Ridge Road inWoodcliff Lake.

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The six office buildings acquired by the Keystone-led jointventure include 555, 565 and 570 Taxter Road in Taxter CorporatePark in Elmsford, NY, which total 422,422 square feet of Class Aoffice space. Ownership plans to invest nearly $6 million toupgrade the property's amenities, elevators, bathrooms, HVACsystems and building roofs.

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The partnership also purchased Talleyrand Office Park, locatedat 200 and 220 White Plains Road in Tarrytown. The twin six-storyoffice buildings totaling 178,749 square feet are located on a75-acre wooded site between Exit 9 of the New York State Thruwayand Exit 1 of the Cross Westchester Expressway, just three minutesto the Tappan Zee Bridge. The new ownership plans a $1.4-millioncapital improvement program to upgrade the buildings' elevators,bathrooms, amenities and roofs.

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The deal also includes Soundview Plaza, a seven-story,179,610-square-foot class A office tower in Stamford. The buildingpreviously won The Office Building of the Year (TOBY) award fromthe Connecticut chapter of the Building Owners and ManagersAssociation (BOMA) for excellence in office building management.The property features a cafeteria, fitness center, multimediaconference center, five-story garage and access to the nearbyStamford Transportation Center. Keystone plans to modernize thebuilding's amenities, bathrooms and hallways.

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"This closing completes our acquisition of the Tri-Stateportfolio with Mack-Cali, and marks an important step in thestrategic expansion of our regional footprint with the purchase ofwell-located commercial properties where we believe we can createvalue," says Bill Glazer, president of KeystoneProperty Group. "We look forward to executing on our reinvestmentstrategy for these assets to solidify their strong position in themarketplace."

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Mitchell E. Hersh, president and CEO ofMack-Cali, adds, "We are extremely pleased to have completed thisportfolio deal with Keystone. This transaction allows us to makemarked progress on our strategy to redeploy capital into ourgrowing multi-family platform, while continuing to benefit from theupside and management fees from these assets."

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HFF placed the three-year, floating-rate loanwith Cornerstone Real Estate Advisers LLC, actingon behalf of its clients. Keystone , which acquired theproperties through a joint venture with Mack-Cali as part of alarger portfolio deal, will use a portion of the loan to fundupgrades to the properties. In July, HFF secured $47.5million to finance the acquisition of 412 Mt. Kemble Ave. in MorrisTownship, NJ, another property in the portfolio deal betweenKeystone and Mack-Cali.

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John Jordan

John Jordan is a veteran journalist with 36 years of print and digital media experience.