EDISON, NJ—Mack-Cali Realty Corp. says that during the first quarter it reached agreements to sell assets in Washington, DC and Manhattan for approximately $365.5 million. The sales are part of the firm's $750 million goal for dispositions outlined last year in the company's strategic plan and represent an exit from these markets.
As previously reported by GlobeSt.com, Mack-Cali is exiting non-core markets in order to pay down debt, fund capital expenditures, and increase holdings in waterfront and transit-based locations, if available, as well as renovate and reposition existing assets.
“These deals bring us halfway to our goal of $750 million in dispositions. We are proud to have made this much progress so early in the year,” says Michael J. DeMarco, Mack-Cali president. “With these sales the company is well positioned to push ahead with our strategic plan and ultimately to return significant value for our investors.”
The properties sold were:
- 125 Broad Street, New York, NY: Mack-Cali signed a contract to sell the company's ownership in the building for approximately $202 million.
- 1201 Connecticut Avenue, NW, Washington, DC: The company signed a contract to sell the building for approximately $93 million. GlobeSt.com's Erika Morphy reported earlier this month that sources say the buyer is Japanese investor Unizo Holdings.
- 1400 L Street, NW, Washington, DC: Mack-Cali signed an agreement to sell this property for approximately $70.5 million. Morphy reported March 1 that The Meridian Group was buying the property.
The sales are still subject to closing conditions and covenants, but the company expects $400 million in total sales to close by June 2016, and an additional $350 million to be completed by October 2016.
EDISON, NJ—Mack-Cali Realty Corp. says that during the first quarter it reached agreements to sell assets in Washington, DC and Manhattan for approximately $365.5 million. The sales are part of the firm's $750 million goal for dispositions outlined last year in the company's strategic plan and represent an exit from these markets.
As previously reported by GlobeSt.com, Mack-Cali is exiting non-core markets in order to pay down debt, fund capital expenditures, and increase holdings in waterfront and transit-based locations, if available, as well as renovate and reposition existing assets.
“These deals bring us halfway to our goal of $750 million in dispositions. We are proud to have made this much progress so early in the year,” says Michael J. DeMarco, Mack-Cali president. “With these sales the company is well positioned to push ahead with our strategic plan and ultimately to return significant value for our investors.”
The properties sold were:
- 125 Broad Street,
- 1201 Connecticut Avenue, NW, Washington, DC: The company signed a contract to sell the building for approximately $93 million. GlobeSt.com's Erika Morphy reported earlier this month that sources say the buyer is Japanese investor Unizo Holdings.
- 1400 L Street, NW, Washington, DC: Mack-Cali signed an agreement to sell this property for approximately $70.5 million. Morphy reported March 1 that The Meridian Group was buying the property.
The sales are still subject to closing conditions and covenants, but the company expects $400 million in total sales to close by June 2016, and an additional $350 million to be completed by October 2016.
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