Mack-Cali Realty Corporation
) recently disposed a commercial office property in Connecticut.
The deal helped the real estate investment trust (REIT) to gain
about $16.5 million, which it aims to redeploy for other
strategic growth prospects.
The Connecticut property located at 40 Richards Avenue in
Norwalk is a 7-story building and spans 145,487 square-feet. It
was sold to The Davis Companies. With an occupancy level of just
64%, the vending of this property marks a strategic fit.
As a matter of fact, declining occupancies and average asking
rents are plausible concerns for Mack-Cali due to the tough
office market environment in many states. Hence, amid the
unimpressive demand for office space at present, Mack-Cali has
been focusing on expanding its multifamily apartment
In the recent past, Mack-Cali sold a NJ-based property -
situated in Branchburg in Somerset County - for around $6.2
million. Moreover, it divested 2 of its Pa.-based office
buildings - 16 and 18 Sentry Park West - for about $19.3
Additionally, the company divested a Clifton-based office
building to a joint venture (JV) of Gottesman Real Estate
Partners and Mountain Development Corp. (MDC) for $5.8 million.
It also sold a Little Ferry-based asset - Mack-Cali Airport
property - for approximately $32.3 million.
At the same time, Mack-Cali has been inking various
acquisition deals to expand its multifamily apartment portfolio.
Among the recent acquisitions, Alterra IA and Alterra IB at
Overlook Ridge in Metro Boston are noteworthy. Mack-Cali acquired
the properties from a JV of Prudential Insurance Company of
America, an operational arm of
Prudential Financial Inc.
Additionally, the company entered the D.C. multifamily market
through the buyout of Crystal House. The property was acquired
through a JV with a fund advised by UBS Global Asset Management
). We believe that such restructuring efforts will ultimately
help the company to diversify its assets and ride high on
Mack-Cali currently carries a Zacks Rank #4 (Sell). However,
another REIT that is performing better and deserves a look is
Winthrop Realty Trust
) with a Zacks Rank #1 (Strong Buy).
MACK CALI CORP (CLI): Free Stock Analysis
WINTHROP REALTY (FUR): Free Stock Analysis
PRUDENTIAL FINL (PRU): Free Stock Analysis
UBS AG (UBS): Free Stock Analysis Report
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