Mack-Cali Selling Suburban Philadelphia CRE Portfolio

Mack-Cali Realty Corporation announced this week that it had entered into agreements, forming joint ventures with a fund sponsored by Keystone Property Group, to sell Mack-Cali's 15 commercial real estate properties as well as three land parcels in the suburban Philadelphia market. According to the company's press release, the portfolio will be sold for approximately $233 million: $201 million in cash, a $10 million mortgage secured by One Plymouth Meeting, and subordinated interests in the portfolio with capital accounts aggregating $22 million.

The properties include:

• 150 Monument Road, Bala Cynwyd; 125,783 square feet

• 1000-1235 Westlakes Drive, Westlakes Office Park, Berwyn; 444,350 square feet

• 4 & 5 Sentry Park, Blue Bell; 193,930 square feet

• 100-300 Stevens Drive, Airport Business Center, Lester; 371,000 square feet

• 1000 Madison Avenue, Lower Providence;100,700 square feet

• Rose Tree Corporate Center I and II, 1400 N. Providence Road, Media; 260,000 square feet

• One Plymouth Meeting, 502 W. Germantown Pike, Plymouth Meeting; 167,748 square feet

Mitchell Hersh, President and CEO of Mack-Cali, said, "My relationship with Keystone has afforded us the opportunity to make this transaction happen. It offers our Roseland subsidiary an opportunity to develop additional luxury multi-family properties that are in line with our reputation for building best in class residential at the gateway to the Main Line in Philadelphia. In addition, Mack-Cali will have the opportunity to redeploy the proceeds from this sale into more strategic growth opportunities."

For more news and information visit Blumberg Capital Partners.

Mack-Cali Sells New Jersey Office Building for $72.3M

Mack-Cali Realty Corporation announced this week that is had sold 55 Corporate Drive in Bridgewater, New Jersey in an all cash deal for $72.3 million. The four-story, 205,439-square-foot class A property was sold to a subsidiary of Cole Corporate Income Trust, Inc., an entity managed by Cole Real Estate Investments. Adam Spies, Kevin Donner and Neill Wessell with Eastdil Secured in New York represented the seller.

Mack-Cali developed the building in 2011 as a build-to-suit for Sanofi-Aventis. Building IV sits on 154 acres in the Route 78 East submarket of Somerset County, and is fully occupied by the diversified global healthcare leader.

"What appealed to us is a combination of investment-rate credit, it's a long-term lease (still 13 years), a strategically important asset—part of their U.S. headquarters, and it's a good-quality location," Robert Micera, Cole's chief investment officer for office and industrial, told Commercial Property Executive. "It's in good proximity to the major highways in New Jersey and in good proximity to New York. All of these things combined make this fit right in with our parameters of seeking long-term lease transactions that have great creditworthy tenants and good rent growth."

Mitchell E. Hersh, president and chief executive officer of Mack-Cali, commented, "The sale of this property continues our strategy of monetizing non-core assets." Mack-Cali Realty owns or has interests in 278 assets, including 269 office and office/flex properties totaling 31.1 million square feet and nine multi-family rental properties containing more than 3,300 residential units, all located in the Northeast.

For more news and information visit Blumberg Capital Partners.