Mack-Cali’s march into the multi-family marketed continued today (Thursday) when it was announced the New Jersey-based REIT has entered the Washington DC market.
In a joint venture with a fund advised by UBS Global Asset Management, Mack-Cali paid $262.5 million for the 828-unit Crystal House in the Crystal City section of Arlington, Virginia.
The acquisition includes land to accommodate the development of anther 295 additional units, 252 of which are currently approved.
The announcement comes following Mack’s purchase of Roseland Properties last October as it continues to diversify its’ predominantly office portfolio.
The company called that $135 million deal a “fundamental step” in the continued diversification of its portfolio, while Roseland said it brought “unparalleled opportunities” to expand both companies’ business platforms.
Roseland will manage the newly-acquired Crystal House and oversee the renovation of the unrented units to what they called “designer” standards, repositioning the asset “to bring it in line with the best-in-class standards Roseland is known for.”
“The Mack‑Cali/Roseland team is thrilled to be entering the Metro D.C. market, one that offers enormous potential,” said Mitchell E. Hersh, president and chief executive officer of Mack-Cali.
“When we’ve completed the renovation project, we are confident that we’ll be able to command rents at the highest end of the market.”