By Barbra Murray
Mack-Cali Realty Corp. continues the transformation of its portfolio with the disposition of Elmsford Distribution Center in Elmsford, N.Y., in the heart of Westchester County. The company sold the 386,000-square-foot warehouse/distribution complex to Realterm Logistics for approximately $70.3 million.
Elmsford encompasses six buildings at 1-6 Warehouse Lane, ranging from 6,600 to 195,500 square feet. The first five facilities opened in 1957, while the final building, 6 Warehouse, debuted in 1982. Mack-Cali had owned the campus, which can accommodate 100,000 square feet of additional industrial development, since 1997.
“The sale of Elmsford Distribution Center serves as a significant milestone in our plan to strategically consolidate the Mack-Cali portfolio,” Michael DeMarco, CEO of Mack-Cali Realty Corp., said in a prepared statement.
Mack-Cali is in the process of withdrawing from the flex-warehouse sector to concentrate on office assets in Jersey City, N.J., and the further development of the waterfront multifamily segment of its portfolio. The company began repositioning its holdings in the second quarter of 2015 with the goal of refocusing away from its status as a predominantly suburban office company.
The company’s major strategic transactions since launching is portfolio conversion include the 2017 sale of a 1.2-million-square-foot group of industrial assets in Moorestown and Burlington, N.J., part of the Greater Philadelphia area. During the same year, the company sold the 508,000-square-foot Totowa Commerce Center in Passaic County, N.J., and an approximately 823,700-square-foot office portfolio in Cranford and Clark, N.J.
At the close of the third quarter of 2018, Mack-Cali’s repositioning program had yielded a decrease in its industrial and suburban office holdings from 63 percent of its portfolio to just 28 percent. Proceeds from the sale of the Elmsford property will be used to pay down debt accrued from investments in the company’s multifamily platform.
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