Virginia Sobol, Mack-Cali's vice president of marketing, confirmed the closing and the price. Earlier this week, CEO Mitchell Hersh briefly touched on the pending sale during the quarterly earnings call.
Savvy negotiations drove a selling price that's about $6.5 million less than the 2001 assessed value and $1 million less than a recent appraisal. "It's a reflection of the market in Dallas," Gary Horn of Ashwood American Properties. Brookview's partner, tells GlobeSt.com.
According to Mack-Cali, recent appraisals obtained in connection with the financing of the transaction reflect a fair market value of approximately $35 million. The contract price for the properties was consistent with the appraisal, but credit for approximately $1 million for capital improvements and other adjustments resulted in a final sale price of $34 million.
Brookview will be getting the deeds to 3100 Monticello, a 173,837-sf structure that's home to Insignia/ESG's Dallas team; the Metroport, a 142,634-sf office building at 2300 Valley View Lane in Irving; 555 Republic Place, 97,889 sf in Plano; and Landmark Bank Centre, 74,429 sf at 150 W. Parkway in Euless.
Area taxing districts put the assessed values at $16.2 million for 3100 Monticello; about $12.3 million for the Metroport; $8.1 million for 555 Republic Place; and $4.9 million for Landmark Bank Centre.
Horn says the partnership looked at several buildings in the past year for its flagship buy. The Mack-Cali properties are stable suburban properties with strong occupancies for today's market. The Monticello, nestled in the prestigious Highland Park, is 88.37% occupied and fetches $22 per sf, according to George Roddy Sr. of DFWRealSmart Inc., the statistical database for Roddy Information Services of Dallas. The Plano office building is 94.41% occupied and brings $21.50 per sf. The 10-story Metroport is 93% occupied and carries a $21 per sf rate. Landmark Bank Centre, quoted at $18.50 per sf, is fully occupied.
The buying partnership represented itself at the bargaining table. Insignia/ESG in Dallas negotiated the deal for Mack-Cali.
For the past year, Mack-Cali, as the industry is well aware, has been selling holdings west of the Mississippi and deploying proceeds to the northeast. Mack-Cali is left with two buildings in Dallas-Fort Worth, six in Houston and two in San Antonio.
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