Mack-Cali Sells Last Suburban Office Portfolio for $84M
The transaction is part of the firm’s strategy to divest its non-core assets.
Mack-Cali Realty Corp. has sold a suburban New Jersey office portfolio for $84 million, the company announced. First Mile Properties, an affiliate of New York-based Crown Acquisitions, purchased the multi-building campus. The sale marks the REIT’s last suburban office portfolio sale in its ongoing divestiture of non-core assets.
Located in Red Bank, N.J., about 45 miles south of Midtown Manhattan, River Centre totals 639,490 square feet across six Class A office buildings. The first 3 buildings of the campus were built in 1984 while the last two were constructed in 1990, according to CommercialEdge. In 2004, Mack-Cali acquired four of the office buildings, before purchasing the remaining two properties in 2017.
One of the properties in the office complex was recently renovated into a space solely dedicated to amenities that includes a fitness center, a tenant lounge, a café and an outdoor area, according to Mack-Cali. The campus is currently 66 percent leased.
A Cushman & Wakefield Capital Markets team of Andy Merin, David Bernhaut, Gary Gabriel, Frank DiTommaso and Seth Zuidema arranged the transaction.
Mack-Cali CEO Mahbod Nia said in a statement that the sale is an “important milestone” in the company’s ongoing strategy to shed its suburban office portfolio and simplify its holdings. Earlier this year, the REIT sold an office portfolio in Short Hills, N.J., to the Birch Group for $255 million and the 945,906-square-foot Metropark portfolio to Opal Holdings for $254 million.
The Jersey City-based REIT recently unveiled the latest phase of Harborside, its 4.3 million-square-foot office campus along the Jersey City waterfront. Harborside 1, a 422,590-square-foot office building, is set to achieve LEED Gold certification and will anchor the five-building campus.