CRANFORD, NJ-Mack-Cali Realty Corp., based here has sold seven of its remaining western office properties for a total of $80 million. Located in Houston, Denver and Roseville, CA, the assets total more than 700,000 sf.
“These sales are consistent with our overall strategy of leaving non-core market in the West and Southwest and strengthening our position in our core Northeast and Mid-Atlantic markets,” according to Mitchell E. Hersh, CEO of the REIT.
The properties, sold in three separate deals, include three in Houston. Parkway Properties of Jackson, MS spent $27.2 million to acquire the 109,600-sf 1717 St. James Place, the 155,000-sf 5300 Memorial Dr., and the 148,400-sf 10497 Town & Country Way.
In Aurora, CO, the 108,000-sf 750 South Richfield St., fully occupied by TRW, was sold to Atlanta-based Wells Real Estate Funds for $21.1 million. And in Roseville, CA, near Sacramento, Mack-Cali’s joint venture partnership with Highridge Partners sold the three-building, 183,200-sf Lava Ridge Business Center to Property Reserve Inc. Lava Ridge was developed by the partnership in 2000.
Mack-Cali has also terminated a contract that would have resulted in the sale of a total of 17 buildings in Denver. The prospective buyer was not named, and Mack-Cali will continue to own and operate the properties “until market conditions in Denver improve,” according to Hersh. “While we still intend to exit the Denver market, we feel it is in the best interests of our company and its shareholders to sell the rest of our Denver portfolio under more favorable market conditions, when full value can be realized.”
Since Mack-Cali embarked on its effort to shed non-core-market properties in September, 2000, the company has moved a total of 25 wholly-owned and joint venture assets amounting to more than three million sf for some $375 million. In the same period, the company has acquired to office properties totaling more than 900,000 sf, spending a total of some $97 million in the Northern and Central New Jersey and Westchester County, NY markets.