Real Estate Weekly
Image default
Deals & Dealmakers

Mack-Cali shifts focus to New Jersey waterfront

Mack-Cali Realty Corporation, one of the biggest REITs in NYC, announced a major shift in the company’s business initiative, choosing to focus its future squarely on the “Gold Coast” waterfront properties in and around New Jersey.

The company announced a comprehensive three-year strategic initiative entitled “20/15” that outlines the future of Mack Cali’s portfolio.

“Our team is committed to unlocking value for our stakeholders by refocusing the company to take advantage of our class A assets and expanding our luxury multi-family holdings,” said Mack Cali CEO Mitch Rudin in a press release.


The news comes 10 months after former president and CEO Mitchell Hersh left the company after 17 years service.

After new CEO Rudin and president Michael DeMarco were named as the new leadership team in June, the firm’s shares increased by 15 percent, after a decade of underperforming amidst the broader REIT market, according to the Wall Street Journal.

Mack-Cali will now focus on waterfront properties in Jersey City, Weehawken, Hoboken, and West New York.

Mack-Cali plans to dispose between $600 million and $800 million in assets to fund its new capital plan. According to the company’s website, the firm owns 29.7 million s/f of office space and 19 multi-family rental buildings with around 5,700 units in Northeast.

The firm also plans to improve operating efficiencies and upgrade its suburban assets.

125 Broad Street
125 Broad Street

On Monday, it was revealed that the firm is planning to sell its only New York City property – a commercial condo at 125 Broad Street in FiDi – and is hoping to get $300 million for it, according to a report from Crain’s.

“Our actions over the last 100 days are just the beginning of a company-wide overhaul designed to create value, while continuing to enhance transparency and disclosure for our investors,” said DeMarco. “We will be disciplined in our approach to allocating capital and managing our balance sheet to ensure the maximum amount of earnings growth and drive our stock price to over NAV.”

The firm plans to further expand into the growing Jersey City markets, in both commercial and residential. The firm currently owns 4.3 million s/f of waterfront office space, and 3,400 luxury multi-family units.

In Jersey City, the firm is currently building Urban Ready Living Harborside, a 69-story, 763-unit rental building, in a partnership with Ironstate Development Company. Once completed, the project will be the tallest tower in New Jersey. The company is also developing M2, a 311-unit luxury tower that will stand alongside Marbella, the completed 412-unit, 40-story luxury high-rise near Harborside, at the end of the year.

Mack-Cali is also relocating its headquarters to Jersey City next year.

“People today want to live, work, and play in the same area,” said Rudin. “They want transit options – how they get to work is almost as important as where they work. Changes we are making to our portfolio and improvements we are making in our efficiency will create a sleeker, more responsive company that is better able to achieve its long-term goals and meet the future needs of our tenants and residents.”

Related posts

Hitmaker Moving Recording Studio to 60 Charlton St.


324West108 Launches Sales of Luxury Townhouse Conversion in the Upper West Side


The Feil Organization and First Look Media Sign 8,000 Square-Foot Lease at 853 Broadway