Mack-Cali Realty Corporation has sold its Metropark office portfolio in Edison and Iselin NJ, for $254 million to Opal Holdings.
The sale, comprising four office buildings containing 945,906 square feet, represents one of the largest suburban office transactions this year and is part of the REIT’s strategy of divesting its suburban office assets, signaling a strong start to 2021.
The company plans to use the sales proceeds to pay down its unsecured corporate debt during the second quarter of 2021.
“This sale marks a key milestone in our strategy to sell non-core suburban office assets, which we expect to substantially complete in the near future,” said Mahbod Nia, Chief Executive Officer of Mack-Cali. “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, comprised of 99 and 101 Wood Avenue South and 333 and 343 Thornall Street is currently more than 90% leased to blue chip tenants and benefits from recent capital improvement projects.
“We have made significant strides in executing our plan to divest non-core assets at a rapid pace,” said Ricardo Cardoso, Executive Vice President and Chief Investment Officer of Mack-Cali. “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 non-core commercial assets. This deal was an enormous collaboration among various teams, and I am thrilled with the partnership and joint efforts which brought it to completion. Opal Holdings moved fast to take this opportunity to add to their Metropark holdings and worked hard to successfully close.”
A Cushman & Wakefield New York Metropolitan Area Capital Markets team of Andy Merin, David Bernhaut, Gary Gabriel, Frank DiTommaso and Seth Zuidema, in conjunction with Adam Spies and Kevin Donner of Cushman & Wakefield’s New York Institutional Investment Sales team, and leasing specialists Todd Elfand and Kevin Carton, led the assignment.
“The sale of this Class-A portfolio will potentially be one of the largest suburban office trades New Jersey sees this year,” said Merin, Executive Vice Chairman at Cushman & Wakefield. “We have a longstanding relationship with Mack-Cali, and we appreciate their trust in our team’s ability to continually deliver results that help further execute their greater business plan.”
Opal Holding is a New York City based investment firm led by Shaya Prager. which last year acquired 194 Wood Avenue South, in the Metropark complex from AIG for $140 million. That 470,692 s/f property is anchored by IBM and fully leased to seven tenants.