Mack CEO Mitchell Hersh was unavailable for comment, but in aprepared statement, he explains that the termination agreementcalls for Prentiss to gain Mack's 270,000-sf Cielo Center in Austinfor $47.1 million. In addition, the locally based REIT hasdeposited $25 million into an escrow account for the "benefit ofPrentiss Properties."
According to published reports, the sale of the Austin assetmight be the first step in a major shedding of properties beyondthe REIT's original Northeast concentration. In yet anotherprepared statement, the REIT has unveiled only "strategic propertydivestitures to further enhance Mack-Cali's financialstrength."
Turning a negative into a positive, Hersh has said on the recordthat that while "we're disappointed that the merger will not occur,this settlement allows Mack-Cali and Prentiss to refocus on theircore strategies."
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
John Salustri
John Salustri has covered the commercial real estate industry for nearly 25 years. He was the founding editor of GlobeSt.com, and is a four-time recipient of the Excellence in Journalism award from the National Association of Real Estate Editors.
