Mack-Cali Realty Corp. (
acquired a community center - Alterra at Overlook Ridge IA - in
Revere, Massachusetts for approximately $61.3 million. In
addition, the company inked a deal to purchase 'Alterra at
Overlook Ridge IB' for roughly $88.7 million, which is expected
to close in Apr 2013, subject to the opening of prepayment option
of the property's loan.
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Mack-Cali - a real estate investment trust (REIT) - acquired the
properties from a joint venture of Prudential Insurance Company
of America, an operational arm of
Prudential Financial Inc. (
. The transactions are in line with the company's motive of
owning premium quality properties in upscale markets.
Alterra IA and Alterra IB, which collectively comprise 722-units,
are located within the master planned community - Alterra at
Overlook Ridge. Positioned at the traditional residential area,
the properties are currently 97.2% occupied and are well
connected to schools, hospitals and entertainment centers. These
are also in close proximity to north of downtown Boston.
Alterra at Overlook Ridge is developed and managed by Mack-Cali's
recently acquired Roseland subsidiary. In Oct 2012, Mack-Cali
acquired Roseland Property - one of the largest residential
developers in the northeast. Ever since, Roseland Property is
operating as a subsidiary of Mack-Cali.
We expect the acquired properties to complement the company's
other upscale property in Massachusetts area - Quarrystone at
Overlook Ridge. Also, the transaction will likely be accretive to
the company's earnings in the upcoming quarters.
Mack-Cali is scheduled to release its fourth-quarter 2012 results
on Feb 7, 2013 before the opening bell. The Zacks Consensus
Estimate for the company's fourth-quarter FFO (funds from
operations) is currently pegged at 63 cents per share.
Zacks Earnings ESP (Read:
ZACKS EARNINGS ESP: A BETTER METHOD
) for Mack-Cali is -1.59% for the fourth quarter. This reduces
the chance for a positive earnings surprise though it carries a
Zacks Rank #3 (Hold).
Two of Mack-Cali's peers -
DiamondRock Hospitality Co. (
Brandywine Realty Trust (
- hold Zacks Rank #1 and #2, respectively.
Note: FFO, a widely accepted and reported measure of the
performance of REITs is derived by adding depreciation,
amortization and other non-cash expenses to net income.