We were surprised and disappointed that your GlobeSt.com article on May 8 entitled "$34M Mack-Cali Sale Ready to Close" inaccurately described the terms and the value of the recent transaction between Mack-Cali and Brookview Partners in Dallas.
First, the article states that the property was purchased for "a selling price that's about $6.5 million less than appraised value." Wrong. The recent appraisal requested by Brookview Partners actually shows the combined fair-market value of the properties was approximately $35 million without discounting for a reserve for capital improvements of approximately $1 million. The final sales price negotiated with the buyer was $34 million, reflecting the current fair market value of quality office properties with high occupancy levels and income streams.
Second, the article failed to mention that Mack-Cali received considerable interest in the properties from a number of buyers. In fact, bidding was quite competitive resulting in extremely good market pricing.
Unfortunately, your reporter relied on assessed property values – not current values – to frame her story. Because assessments are never up-to-date it and do not represent market values in a falling or rising market, it is very difficult to use them as a basis for the success of negotiations.
Furthermore, the reporter spoke with the buyer but failed to reflect accurately their conversation in the article. The buyer's representative, Gary Horn, told the reporter the price was fair market value. In the future, we hope your publication [sic] will focus on current market appraisals and factual statements to determine the accurate outcome of major real estate transactions.
Sincerely,
Mitchell Hersh
CEO
Mack-Cali Realty
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