Mack-Cali Realty Corp. has continued its strategy of shedding its suburban office holdings, selling a Red Bank portfolio to First Mile Properties for $84 million, it announced Monday.
Jersey City-based Mack-Cali said in a news release that the proceeds from River Centre, a 639,490-square-foot, Class A complex, will be used toward repayment of the company’s term loan. The property includes six buildings, one of which was recently renovated into dedicated amenity space. The complex is currently 66% leased.
“The sale of River Centre marks another important milestone and takes us one step closer to successfully completing the disposition of our suburban office portfolio,” CEO Mahbod Nia said in a prepared statement. “We remain focused on concluding the remaining asset sales to meet our objectives of streamlining the business, strengthening our balance sheet and creating value for our shareholders.”
Cushman & Wakefield’s Capital Markets team arranged the transaction. The team was led by Andy Merin, David Bernhaut, Gary Gabriel, Frank DiTommaso and Seth Zuidema, supported by Kevin Carton and Todd Elfand.
C&W’s Equity, Debt & Structured Finance team of John Alascio, Alex Hernandez, Chuck Kohaut and T.J. Sullivan arranged acquisition financing for First Mile.
“Our team previously sold nearly 40% of the River Centre properties to Mack-Cali, who did a fantastic job in updating select common areas throughout the portfolio, in addition to creating a fully dedicated amenity building to serve the campus,” Merin said in a statement. “River Centre represents nearly half of all the office inventory with a Red Bank address, and future ownership has the opportunity to control a majority of the local market and continue to reposition the portfolio via additional capital investments and leasing strategies.”
Mack-Cali also announced Monday that it has appointed Victor B. MacFarlane to its board of directors. MacFarlane, the chairman and CEO of real estate investment management and development firm MacFarlane Partners, has more than 40 years of real estate experience. He will serve on the Audit and Compensation committees.