Mack-Cali Completes Financing Deals with TIAA

CRANFORD, NJ-Mack-Cali Realty Corp., the REIT based here, has completed two financing transactions totaling more than $114 million with Teachers Insurance Annuity Association. In the first transaction, Mack-Cali exchanged $90 million in existing 7.18% unsecured notes, due to mature on Dec. 31, 2003, for $94.9 million in 6.15% unsecured notes that mature on Dec. 15, 2012. The new bonds were priced to yield 6.875%.

In the second transaction, the REIT got a new $19.5 million, 10-year mortgage loan carrying an interest rate of 6%. The funding is secured by Soundview Plaza, a 179,260-sf office building in Stamford, CT, acquired just last month by Mack-Cali.

“These transactions enhance our financial flexibility by providing us with funding at attractive rates and allowing us to lengthen our weighted average debt maturity profile from 4.1 to 4.6 years,” according to Mack-Cali CEO Mitchell E. Hersh. “We remain committed to our strategy of maintaining as high level of unencumbered assets, which remains at 77% of our portfolio’s square footage.”