Mack-Cali Sells Wyndham HQ for $96.6M

Mack-Cali Realty Corporation, the New Jersey-based REIT, announced this week that it had sold 22 Sylvan Way in Mack-Cali Business Campus, Parsippany, New Jersey, for $96.6 million to Griffin Capital Corporation. The commercial office property is apparently the priciest office transaction so far this year in New Jersey. As part of the transaction, Griffin has assumed responsibility for approximately $7 million in future tenant improvement allowance and commission obligations. Full terms of the deal were not disclosed. Mack-Cali was represented in the transaction by Jose Cruz and Kevin O'Hearn, both of HFF.

"Due to the long-term lease with Wyndham, this was an excellent opportunity to monetize the value of this class A corporate headquarters," said Mitchell Hersh, president and chief executive officer of Mack-Cali. "The proceeds will be reinvested into more strategic growth opportunities throughout the Northeast."

The three-story, 249,400-square-foot property was originally developed in 2009 pursuant to a long-term, net lease to serve as the headquarters for Wyndham Worldwide Corporation. Wyndham extended the lease term, re-upping to 15 years, to coincide with the term on its recently completed headquarters expansion at the adjacent 14 Sylvan Way, which also was developed and is owned by Mack-Cali.

For more news and information visit Blumberg Capital Partners.

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.

AvalonBay Sells DC Area Properties

AvalonBay Communities, Inc. announced this week that it had completed the sale of two Washington, DC-area properties this month for $332 million. The Arlington-based company sold Avalon Decoverly in Rockville, Maryland for $135 and Crystal House in Arlington, Virginia for $262.5 million. Both properties were sold at a weighted average initial year market capitalization rate of 5.2%. Mack-Cali Realty Corp., a real estate investment trust, purchased Crystal House in a joint venture with a fund advised by UBS Global Asset Management. Walker & Dunlop LLC provided a $165 million mortgage loan to the JV through a Fannie Mae program, according to a CoStar report.

"The Mack Cali/Roseland team is thrilled to be entering the Metro DC market, one that offers enormous potential. When we've completed the renovation project, we are confident that we'll be able to command rents at the highest end of the market," said Mitchell Hersh, president and chief executive officer of Mack-Cali.

AvalonBay completed its acquisition of Archstone Enterprise with partner Equity Residential last month; Crystal House was acquired as part of its Archstone Enterprise deal, according to a Washington Business Journal article. AvalonBay and Equity Residential formed the joint venture partnership to buy Archstone's assets. AvalonBay got 40% of the portfolio, or 60 apartment communities, including thousands of apartments in the Washington area, while Equity Residential got the remaining 60%, or 78 properties.

For more news and information visit Blumberg Capital Partners.

Keystone Picks Up Moorestown Corporate Center for $20M

Moorestown Corporate Center on Strawbridge Drive in Moorestown, New Jersey traded hands this month as Mack-Cali Realty sold the complex to a fund sponsored by Keystone Property Group for approximately $19.9 million. "The sale of these buildings continues our plan of recycling our capital out of non-core assets," said Mack-Cali chief executive Mitchell Hersh.

Moorestown Corporate Center includes three buildings at:

224 Strawbridge Drive (74,000 square feet)
228 Strawbridge Drive (74,565 square feet)
232 Strawbridge Drive (74,258 square feet)

According to a NASDAQ report, the property was 61.4% leased at the time of sale. Mack-Cali was represented by Jones Lang LaSalle in the transaction, with Shaw Environmental, an engineering firm, occupying all 74,565 square feet of space in the building at 228 Strawbridge.

For more news and information visit Blumberg Capital Partners.