Mack-Cali Realty Corporation announces the $84 million sale of River Centre, a 639,490 square foot office portfolio in Red Bank, New Jersey to First Mile Properties, the suburban affiliate of Crown Acquisitions of New York. River Centre is Mack-Cali’s last suburban office portfolio, and its sale is another significant step in the company’s pursuit of simplification. The proceeds will be used towards repayment of the Company’s term loan.
The Class A office complex is comprised of six buildings, one of which was recently renovated into dedicated amenity space complete with a state-of-the-art fitness center, a tenant lounge, café and outdoor area. The portfolio is currently 66% leased.
“The sale of River Centre marks another important milestone and takes us one step closer to successfully completing the disposition of our suburban office portfolio,” said Mahbod Nia, Chief Executive Officer of Mack-Cali. “We remain focused on concluding the remaining asset sales to meet our objectives of streamlining the business, strengthening our balance sheet and creating value for our shareholders.”
“The disposition of the Red Bank portfolio is further evidence of our team’s hard work and dedication to our suburban office sales strategy following our strong sales of Short Hills and Metropark, respectively,” added Ricardo Cardoso, Executive Vice President and Chief Investment Officer of Mack-Cali. “We are thrilled to build upon the positive momentum of our recent dispositions and complete our exit from the suburban office market in the near-term.”
Cushman & Wakefield’s Capital Markets team arranged the transaction. “Our team previously sold nearly forty percent of the River Centre properties to Mack-Cali, who did a fantastic job in updating select common areas throughout the portfolio, in addition to creating a fully-dedicated amenity building to serve the campus. River Centre represents nearly half of all of the office inventory with a Red Bank address and future ownership has the opportunity to control a majority of the local market and continue to reposition the portfolio via additional capital investments and leasing strategies,” said Andy Merin, who led the assignment alongside David Bernhaut, Gary Gabriel, Frank DiTommaso and Seth Zuidema. The sales team was supported by local leasing experts Kevin Carton and Todd Elfand. In addition, Cushman & Wakefield’s Equity, Debt & Structured Finance team of John Alascio, Alex Hernandez, Chuck Kohaut and TJ Sullivan arranged the acquisition financing on behalf of the purchaser, First Mile Properties.
The sale of the Red Bank office portfolio follows Mack-Cali’s successful $255 million sale of its Short Hills, New Jersey office portfolio in April and the $254 million sale of its Metropark portfolio in March.
About Mack-Cali Realty Corporation
One of the country’s leading real estate investment trusts (REITs), Mack-Cali Realty Corporation is an owner, manager and developer of premier office and multifamily properties in select waterfront and transit-oriented markets throughout New Jersey. Mack-Cali is headquartered in Jersey City, New Jersey, and is the visionary behind the city’s flourishing waterfront, where the company is leading development, improvement, and place-making initiatives for Harborside, a master-planned destination comprised of class A office, luxury apartments, diverse retail and restaurants, and public spaces.
A fully integrated and self-managed company, Mack-Cali has provided world-class management, leasing, and development services throughout New Jersey and the surrounding region for over two decades. By regularly investing in its properties and innovative lifestyle amenity packages, Mack-Cali creates environments that empower tenants and residents to reimagine the way they work and live.
For more information on Mack-Cali Realty Corporation and its properties, visit https://www.mack-cali.com/.