Mack-Cali will unload more than three million square feet of office and residential space in Westchester county, selling a 56-building office and residential property portfolio for $487.5 million.
According to a statement from Mack-Cali, the company is currently in contract with RMC Acquisition Entity, an affiliate of the Robert Martin Company, and will complete the transactions sometime in the second quarter of this year.
According to a representative for Mack-Cali the bulk of the properties are located in southern Westchester County, specifically in Yonkers, while some are in Hawthorne and Tarrytown.
“The sale of our office/flex portfolio substantially completes our strategic repositioning. Mack Cali’s evolution to a waterfront centric office and residential landlord is complete,” said Michael DeMarco, CEO of Mack-Cali in a statement.
“Proceeds from the sale of this portfolio will be used in part to pay down debt and to purchase Soho Lofts, a 377-unit apartment community in Jersey City, which furthers our waterfront strategy.”
Mack-Cali has worked to consolidate much of its suburban portfolio throughout the last several years, pivoting to waterfront property like its 4.3 million s/f Harborside portfolio on the Jersey City waterfront where it embarked on a $75 million multi-phase improvement plan. In addition to its waterfront-centric portfolio, Mack-Cali has also focused on transit-oriented-development, TOD, as part of a repositioning announced in 2015.
“This disposition aligns with company strategy to continue to focus on assets in transit-based locations along the NJ waterfront,” said a representative in a statement.
Mack-Cali acquired the Robert Martin company in the 1990’s which is when it received the Westchester assets.