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PARSIPPANY, NJ-Mack-Cali Realty Corp. has agreed to develop a 250,000-sf class A office building for Wyndham Worldwide Corp., which the hotelier will use as its new corporate headquarters. Wyndham has preleased the new building for 15 years in a deal arranged in-house by that company’s Frank Galus. Mack-Cali was also represented in-house, by Diane Chayes, vice president of leasing. Further terms were not released; comparable existing space in nearby buildings carries an average asking price of $25 per sf and tops out at $28 per sf. Mack-Cali officials declined to disclose the estimated cost of the new construction.

“We’re thrilled to further solidify our presence and relationship with the town of Parsippany, and with Mack-Cali, says Wyndham EVP Mary Falvey. “We are committed to this community.”

For Wyndham Worldwide, which is the hotel spin-off company of the now-defunct Cendant Corp., the deal means a reconfiguration of its headquarters location. The company currently maintains its headquarters at 7 Sylvan Way, a 146,000-sf building within the Mack-Cali Business Campus here, and will keep that space after the new building is completed on an adjacent site. Completion of the three-story granite building, designed by HLW International, is now slated for Q3 2008.

Wyndham has also given up its space at the campus’ 1 Sylvan Way and 10 Sylvan Way, with that space already leased to other companies, according to Mack-Cali officials. When the headquarters reconfiguration is done, Wyndham will occupy a total of nearly 396,000 sf combined at the new building and the existing 7 Sylvan Way.

“In addition to its buildings and tenants, one of the compelling reasons we acquired the business campus was its developable land component in such a barrier-constrained market,” says Mitchell Hersh, president and CEO of the Edison-based Mack-Cali. “We are now able to deploy that resource in constructing this new headquarters. This project also broadens our longstanding relationship with Wyndham and its predecessor parent company, Cendant.”

Mack-Cali acquired what was then known as the Prudential Business Campus in 1998, paying $170 million for what was then an 875,000-sf office complex. That acquisition also included 74 acres of developable land zoned for up to 1.3 million sf of office space.

Wyndham Worldwide, meanwhile, has a portfolio of 6,500 franchised hotels operating under such brands as Wyndham, Ramada, Days Inn and Fairfield, adding up to more than 543,000 hotel rooms. As reported by GlobeSt.com, its spin-off from Cendant was completed in July 2006.

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