Mack-Cali Realty Corp. ( CLI - Analyst Report ) acquired a community center – Alterra at Overlook Ridge IA – in Revere, Massachusetts for approximately $61.3 million. In addition, the company inked a deal to purchase ‘Alterra at Overlook Ridge IB’ for roughly $88.7 million, which is expected to close in Apr 2013, subject to the opening of prepayment option of the property’s loan.

Mack-Cali – a real estate investment trust (REIT) – acquired the properties from a joint venture of Prudential Insurance Company of America, an operational arm of Prudential Financial Inc. ( PRU - Analyst Report ) . The transactions are in line with the company’s motive of owning premium quality properties in upscale markets.

Alterra IA and Alterra IB, which collectively comprise 722-units, are located within the master planned community – Alterra at Overlook Ridge. Positioned at the traditional residential area, the properties are currently 97.2% occupied and are well connected to schools, hospitals and entertainment centers. These are also in close proximity to north of downtown Boston.

Alterra at Overlook Ridge is developed and managed by Mack-Cali's recently acquired Roseland subsidiary. In Oct 2012, Mack-Cali acquired Roseland Property – one of the largest residential developers in the northeast. Ever since, Roseland Property is operating as a subsidiary of Mack-Cali.

We expect the acquired properties to complement the company’s other upscale property in Massachusetts area – Quarrystone at Overlook Ridge. Also, the transaction will likely be accretive to the company’s earnings in the upcoming quarters.

Mack-Cali is scheduled to release its fourth-quarter 2012 results on Feb 7, 2013 before the opening bell. The Zacks Consensus Estimate for the company’s fourth-quarter FFO (funds from operations) is currently pegged at 63 cents per share.

Zacks Earnings ESP (Read: ZACKS EARNINGS ESP: A BETTER METHOD) for Mack-Cali is -1.59% for the fourth quarter. This reduces the chance for a positive earnings surprise though it carries a Zacks Rank #3 (Hold).

Two of Mack-Cali’s peers – DiamondRock Hospitality Co. ( DRH - Snapshot Report ) and Brandywine Realty Trust ( BDN - Snapshot Report ) – hold Zacks Rank #1 and #2, respectively.

Note: FFO, a widely accepted and reported measure of the performance of REITs is derived by adding depreciation, amortization and other non-cash expenses to net income.