Mack-Cali Realty Corporation announced the $84 million sale of River Centre, a 639,490 s/f office portfolio in Red Bank, New Jersey to First Mile Properties, the suburban affiliate of Crown Acquisitions of New York.
River Centre is Mack-Cali’s last suburban office portfolio, and its sale is another significant step in the company’s pursuit of simplification. The proceeds will be used towards repayment of the company’s term loan.
The Class A office complex is comprised of six buildings, one of which was recently renovated into dedicated amenity space complete with a state-of-the-art fitness center, a tenant lounge, café and outdoor area. The portfolio is currently 66 percent leased.
“The sale of River Centre marks another important milestone and takes us one step closer to successfully completing the disposition of our suburban office portfolio,” said Mahbod Nia, CEO of Mack-Cali. “We remain focused on concluding the remaining asset sales to meet our objectives of streamlining the business, strengthening our balance sheet and creating value for our shareholders.”
“The disposition of the Red Bank portfolio is further evidence of our team’s hard work and dedication to our suburban office sales strategy following our strong sales of Short Hills and Metropark, respectively,” added Ricardo Cardoso, Executive Vice President and Chief Investment Officer of Mack-Cali. “We are thrilled to build upon the positive momentum of our recent dispositions and complete our exit from the suburban office market in the near-term.”
Cushman & Wakefield’s Capital Markets team arranged the transaction. “Our team previously sold nearly forty percent of the River Centre properties to Mack-Cali, who did a fantastic job in updating select common areas throughout the portfolio, in addition to creating a fully-dedicated amenity building to serve the campus,” said Andy Merin, who led the assignment alongside David Bernhaut, Gary Gabriel, Frank DiTommaso and Seth Zuidema.
“River Centre represents nearly half of all of the office inventory with a Red Bank address and future ownership has the opportunity to control a majority of the local market and continue to reposition the portfolio via additional capital investments and leasing strategies.”
The sales team was supported by local leasing experts Kevin Carton and Todd Elfand. In addition, Cushman & Wakefield’s Equity, Debt & Structured Finance team of John Alascio, Alex Hernandez, Chuck Kohaut and TJ Sullivan arranged the acquisition financing on behalf of the purchaser, First Mile Properties.
The sale of the Red Bank office portfolio follows Mack-Cali’s successful $255 million sale of its Short Hills, New Jersey office portfolio in April and the $254 million sale of its Metropark portfolio in March.