Mack-Cali Realty Corporation (CLI - Free Report) sold a Clifton, NJ office building to a joint venture of Gottesman Real Estate Partners and Mountain Development Corp. (MDC).
The deal helped Mack-Cali reap around $5.8 million which the company plans to redeploy for funding its other strategic growth prospects. The property that was sold is a five-storied one, spanning 77,000-square-feet and located at 777 Passaic Avenue in Clifton. It is approximately 65% occupied.
As a matter of fact, Mack-Cali has a strong presence in high barrier-to-entry markets in the Northeast and Mid-Atlantic regions in the U.S. However, holding occupancy and increasing rents are a concern due to the tough environment in the office sector along its footprints. Hence, in the midst of the current unimpressive demand for office space, Mack-Cali has been focusing on expanding its multifamily apartment portfolio.
Notably, the above-mentioned Clifton asset disposition also depicts Mack-Cali’s motive of utilizing the funds generated from non-core assets sale for boosting its diversifying activities.
In recent times, Mack-Cali also sold a Hawthorne-based office property – 19 Skyline Drive – to New York Medical College for approximately $17.5million. New York Medical College is a member of the Touro College and University System.
On the other hand, Mack-Cali has been inking various acquisition deals in expanding its multifamily apartment portfolio. Among the recent acquisitions, Alterra IA and Alterra IB at Overlook Ridge – in Metro Boston are noteworthy. Mack-Cali acquired the properties from a joint venture of Prudential Insurance Company of America, an operational arm of Prudential Financial Inc. (PRU - Free Report) .
Also, the company entered the DC multifamily market, through the buyout of Crystal House. The property was acquired through a joint venture (JV) with a fund advised by UBS Global Asset Management of UBS AG (UBS - Free Report) . We believe such efforts will ultimately help the company diversify its business and stay on the growth trajectory in the long term.
Mack-Cali currently carries a Zacks Rank #3 (Hold). However, another REIT that is performing well and is worth a look includes Host Hotels & Resorts Inc. (HST - Free Report) that carries a Zacks Rank #2.