"This is a watershed event for Mack-Cali," says Mitchell E.Hersh, the REIT's president and CEO. "It solidifies our dominantmarket position, and it provides us with a powerful engine forfurther growth."

As reportedearlier, the deal calls for Mack-Cali to pay $12 million incash, $10 million in common shares and up to another $18 million incash based on a three-year earn-out for Gale Real Estate Services.During that period, Stan Gale will serve as non-executive vicechairman of Gale Real Estate. Hersh will be the company's chairmanand CEO in addition to his Mack-Cali duties.

The deal also calls for Mack-Cali to pay $378 million to a jointventure of Gale and SL Green Realty for 13 class A officeproperties totaling 1.9 million sf in Northern and Central NewJersey. Mack-Cali is also spending $127.5 million to buy one-halfownership interests from Gale and SL Green in seven class A officeproperties totaling 900,000 sf in Northern and Central New Jersey,and is paying Gale another $1.8 million for a 10% interest in a550,000-sf office property in Princeton.