Mack-Cali Realty Corporation has sold two apartment communities for $424 million and refinanced a Massachusetts development with a $72 million mortgage from New York Community Bank.
Mack-Cali sold its JV interest in Crystal House Apartments in Arlington, VA, which it owned in partnership with an institutional investor. Crystal House Apartments, located a block from Amazon’s proposed HQ2, are comprised of an 825-unit operating property and land held for future development. The assets were sold for $377 million comprised of $40 million for the land and $337 million for the operating property.
Additionally, the firm sold Riverwatch Commons (pictured top) for a total of $47 million. The asset is comprised of 200 units in New Brunswick, NJ, at 5 Dennis Street, 10 Dennis Street, and 100 Hiram Square – and is ideally located near Rutgers University and Robert Wood Johnson University Hospital.
The dispositions of the Company’s two oldest properties will elevate the portfolio’s average revenue per home to over $3,100 and reduce the average age of its assets to seven years, which will be further reduced upon the scheduled delivery of three communities in 2021.
The company also refinanced its $60 million existing construction loan at The Emery at Overlook Ridge with a $72 million mortgage from New York Community Bank. The property includes 326 luxury rental homes spread across three five‐story, elevator serviced buildings with a combination of precast structured garage and surface parking. Unit types include a mix of studio, one‐ and two‐bedroom units, with sizes ranging from 529 square feet for studios to 1,342 square feet for larger two‐bedroom units with dens. The asset commenced leasing in February 2020, and despite COVID-related challenges, successfully leased up and is currently 93% leased.
“As we’ve said before, moving forward our emphasis will be on our core markets, asset control and thoughtful management of our balance sheet,” said MaryAnne Gilmartin, Board Chair and Interim Chief Executive Officer of Mack-Cali Realty Corporation. “Securing permanent financing of The Emery, a building that has nearly stabilized since its 1Q 2020 opening, provides the company with excess financing proceeds.”