"For Mack-Cali, this direct, relationship-driven transaction allows us to acquire outstanding office properties at favorable pricing levels," says Mitchell E. Hersh, Mack-Cali's president and CEO, adding that the firm has worked with AT&T for 25 years.
Specifically, Mack-Cali will add the four-building, 670,000-sf 30 Knightsbridge Rd. in Piscataway, NJ, to its portfolio. Under the terms of the agreement, AT&T will lease back two buildings totaling 275,000 sf for 10 years and seven months, and lease back the rest of the complex on a short-term basis.
Also, Mack-Cali will buy back the 475,000-sf Kemble Plaza II in Morris Township, NJ, a property it sold to AT&T four years ago. The latter will stay in the building, leasing it back for one year. The deal also calls for a lease extension through August 2014 by AT&T at the adjacent, 387,000-sf Kemble Plaza I, which Mack-Cali already owns.
As far as Mack-Cali's assumption of a portion of AT&T lease obligations at seven other buildings, the total space involved is more than 927,000 sf and the expirations range from May 2006 to May 2009. The five New Jersey properties include 30A, 30B and 15 Vreeland Rd. in Florham Park; 290 Davidson Ave. in Somerset; and 437 Ridge Rd. in Dayton. The two Staten Island properties are Teleport I and II. Portions of the space have been sublet by AT&T and other firms, according to company officials. Finally, as part of the deal, Mack-Cali will pay AT&T $12.9 million.
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