Mack-Cali Realty Corp. is continuing its divestiture of suburban office assets, selling a Metropark portfolio for $254 million, it announced Tuesday.
The Jersey City-based real estate investment trust said in a news release that it sold the four office buildings, which total 945,906 square feet, to Opal Holdings.
The properties include:
- 99 Wood Ave. S. and 101 Wood Ave. S., Iselin;
- 333 Thornall St. and 343 Thornall St., Edison.
“This sale marks a key milestone in our strategy to sell noncore suburban office assets, which we expect to substantially complete in the near future,” CEO Mahbod Nia said in a prepared statement. “I commend the team’s focus and tireless efforts to bring such a significant transaction across the finish line despite the challenges of the current environment.”
The portfolio is currently more than 90% leased to blue-chip tenants. It has undergone recent capital improvements, Mack-Cali noted.
The REIT said it plans to use sale proceeds to pay down unsecured corporate debt during the second quarter.
“We have made significant strides in executing our plan to divest noncore assets at a rapid pace,” Ricardo Cardoso, executive vice president and chief investment officer, said in a statement. “Most importantly, we have not sacrificed value in these dispositions, and are continuing to make progress on finalizing sale terms on the remainder of our noncore commercial assets.”
A Cushman & Wakefield team of Andy Merin, David Bernhaut, Gary Gabriel, Frank DiTommaso and Seth Zuidema, working with C&W’s Adam Spies, Kevin Donner, Todd Elfand and Kevin Carton, led the transaction.
“The sale of this Class A portfolio will potentially be one of the largest suburban office trades New Jersey sees this year,” Merin said in a statement.