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NEW YORK CITY-Mack-Cali Realty Corp. has completed its acquisition of condominium interests in 125 Broad St. here for $273 million, from SL Green Realty Corp. Concurrently, SL Green has completed the acquisition of 500 West Putnam Ave. in Greenwich, CT for $56 million, from Mack-Cali.

GlobeSt.com first reported this building swap, totaling $329 million in traded properties, in March. Mack-Cali’s new space, which is 100% leased, include floors two through 16 of 125 Broad St. The 524,500-sf buy comprises 39.6% of the total square footage of the 40-story, 1.2-million-sf Downtown tower. Tenants include Citigroup, Oppenheimer and Ark Asset Management.

“This was a non-marketed situation,” Mitchell E. Hersh, president an CEO of Mack-Cali, tells GlobeSt.com, “the result of a very close relationship between myself and Marc Holiday and Steve Green at SL Green. It satisfies strategic objectives for both our companies without involving third-party marketing.”

SL Green’s new property is a four-story, 121,500-sf building that is 94.4% leased. It was Mack-Cali’s sole holding in Greenwich, and leased to a variety of financial, medical and legal tenants.

This is the first property the Edison, NJ-based Mack-Cali owns in Manhattan. “125 Broad St. is an excellent complement to Mack-Cali’s portfolio on the Jersey City waterfront,” Hersh says. “It offers significant upside potential as the positive momentum in the Manhattan market continues.”

Financing wasn’t as simple as subtracting 56 from 273, but that was the gist of it. “It’s not exactly the way the deal was funding,” Hersh says, “but the essence from Mack-Cali’s perspective was, yes, we received close to $56 million in proceeds and set it against a $273-million obligation.”

“It was matched financing between the cost of purchasing our first premiere New York City asset on a unit cost basis. On a square foot and cap rate basis, it equivocated to what we were selling the building in Connecticut to SL Green for. It just made a lot of sense, and it had profound economics. If we had an opportunity to do a similar strategic opportunity, we would most certainly consider it.”

Hersh is “most definitely” interested in Mack-Cali owning more properties in Manhattan, as well as markets it entered in the last year or so, such as Boston and Washington, DC.

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