Mack-Cali Realty Corp. announced Monday it has completed the first deal in a 1031 exchange that will total more than $820 million.
The deal is comprised of the purchase of Liberty Towers, a 648-unit residential tower in Jersey City and the almost-completed sale of the Chase at Overlook Ridge and Alterra at Overlook Ridge, located in Boston, Massachusetts. The sale of the Overlook Ridge properties is expected to close by the end of this month.
The Overlook Ridge properties are to be sold by Rockpoint Group LLC for $411.5 million.
Proceeds from the sale, Mack-Cali said, will be used to buy Liberty Towers for $409 million. It was initially financed with a $232 million mortgage and a line of credit. Sales proceeds will be used to repay the company’s line.
Liberty Towers features amenities including a yoga studio, spin studio, rooftop pool, a boxing gym and an on-site concierge. The tower also has a retail component, featuring a pharmacy, florist and a nail salon.
“We are pleased to further add to our portfolio on the highly desirable Jersey City waterfront through the efficient sale of a portion of our Boston multifamily properties and the purchase of Liberty Towers. This transaction allows us to further concentrate our capital on the waterfront where we believe our market share and operating familiarity with the community should allow us to enhance the performance of Liberty Towers,” Michael J. DeMarco, CEO of Mack-Cali, said.
In addition, Mack-Cali said it expects to receive $2.6 million in proceeds associated with the sale of its Urby tax credit in the fourth quarter of 2019.