Under the terms of the signed agreement, Mack-Cali will buy the Gale Real Estate Services Co. for $12 million in cash, $10 million in common operating partnership units and as much as $18 million in additional cash based on an earn-out formula. The REIT will also acquire from Gale affiliates stakes in certain development/joint ventures with institutional investors on terms to be determined prior to closing.
Mack-Cali will also acquire substantially all of the ownership interests in 13 class A office properties, valued at $378 million and amounting to 1.9 million sf in New Jersey. Included in the total is 343 Thornall St. in Edison, in which Mack-Cali had earlier indicated to would acquire only a half interest.
Finally, Mack-Cali will pick up one-half ownership interests in seven class A office buildings, valued at $127.5 million. The seven properties total some 900,000 sf and are situated in Northern and Central New Jersey.
According to a statement issued by Mack-Cali, "the transactions will be financed through a combination of the assumption of, and placement of new, mortgage debt, credit facility drawings, cash and the issuance of common operating partnership units."
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