In July of this year, a joint venture of Onyx Equities, LLC and Garrison Investment Group acquired 650 From Road, a 373,420-square-foot office building in Paramus, from Mack-Cali Realty Corp.

JERSEY CITY, NJ—The Mack Cali Realty Corp. Board of Directors has decided to sell its 6.6-million-square-foot suburban office portfolio.

In connection with that initiative, Mack-Cali reports it has sold two suburban office portfolios totaling approximately 2.4 million square feet of office space in Parsippany and Madison, NJ to Onyx Equities, LLC in partnership with Taconic Capital Advisors, L.P. and Axonic Capital LLC. The sale totals approximately $285 million in cash and approximately $3.5 million of assumed lease obligations.

That portfolio makes up approximately 36% of the square footage of the company's suburban holdings. Mack-Cali states that it expects to sell the remainder of its suburban office holdings totaling approximately 4.2 million square feet in 2020.

After the completion of the suburban portfolio sale, Mack-Cali's entire holdings will consist of its waterfront class A office portfolio of approximately 5.0 million square feet and the Roseland multi-family operations.

The decision to sell is suburban office portfolio was based on a report and recommendations the Board of Directors received on Tuesday from the Shareholder Value Committee and its financial advisors regarding the company's strategic direction and alternatives for maximizing stockholder value. The company plans to use the available sales proceeds to pay down its corporate-level, unsecured debt.

Earlier this year, a joint venture of Onyx Equities, LLC and Garrison Investment Group acquired 650 From Road, a 373,420-square-foot office building in Paramus, from Mack-Cali Realty Corp.

Recently, New York City-based PAG Investments acquired the 330,00-square-foot 5 Wood Hollow Road office building in Paramus from Mack-Cali Realty Corp. and the joint venture of Aspen Real Estate of Freehold, NJ and Devli Real Estate of New York City acquired the 100% leased 3600 Route 66 office building in Neptune, NJ from Mack-Cali Realty in a deal valued at $26 million.

Instant Insights /

Mack-Cali Realty to Sell Entire 6.6M SF Suburban Office Portfolio

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