Mack-Cali sells Princeton office building for $7.5M, part of ongoing divestment strategy

Mack-Cali Realty Corp. has continued to divest its suburban assets, it said Monday, selling a Class A office building in Princeton for $7.5 million.

The nearly 100,000-square-foot property at 5 Vaughn Drive was sold to East Brunswick-based American Equity Partners, the Jersey City-based real estate investment trust said in a news release.

“We continue to make great progress on our divestment strategy, which includes shedding suburban assets and fortifying our balance sheet,” MaryAnne Gilmartin, board chair and interim CEO, said in a prepared statement. “We will remain diligent in our efforts to reduce corporate debt and refocus on our core assets, including Harborside and multifamily assets across the region.”

The building, in the Princeton Metro Center complex, is 30% leased, Mack-Cali said. The deal was led by Ricardo Cardoso, its executive vice president and chief investment officer.

“Ricardo and his team have done a fantastic job advancing our suburban disposition strategy, despite any obstacles the pandemic could have presented,” Gilmartin said. “I commend everyone on the team for getting yet another transaction over the finish line.”

This sale follows on the heels of other divestitures, including an 11-building Morris County portfolio for $167.6 million, and a $25.8 million Florham Park sale and $21 million Parsippany sale.