In compliance with its ongoing non-strategic assets
Mack-Cali Realty Corporation
) sold a N.J.-based property for around $6.2 million.
Moreover, the company aims to redeploy the obtained amount for
funding other strategic growth prospects. The 2-story property
sold by Mack-Cali is situated in Branchburg in Somerset County.
It spans 63,213 square feet and is occupied by a single
Notably, declining occupancies and average asking rents are
plausible concerns for Mack-Cali due to the tough office market
environment in many states such as N.J. Hence, in the midst of
the current unimpressive demand for office space, Mack-Cali has
been focusing on expanding its multifamily apartment
The New Jersey office market is still recovering from the
impact of Hurricane Sandy as well as statewide corporate
consolidations. According to
Jones Lang LaSalle Inc
), overall average asking rental rates rose only 3.5% to $24.47
per square foot in first-quarter 2013 from $23.65 in
fourth-quarter 2012. This justifies Mack-Cali's decision to
dispose several non-core assets, especially those in N.J.
In connection to its repositioning strategy, last month, the
company divested a Clifton-based office building to a joint
venture of Gottesman Real Estate Partners and Mountain
Development Corp. (MDC) for $5.8 million. Furthermore, in the
same month, it sold Little Ferry-based asset - Mack-Cali Airport
property - for about $32.3 million.
Mack-Cali currently carries a Zacks Rank #3 (Hold). Better
performing REITs include
DCT Industrial Trust Inc.
), both of which carry a Zacks Rank #2 (Buy).
MACK CALI CORP (CLI): Free Stock Analysis
CUBESMART (CUBE): Free Stock Analysis Report
DCT INDUSTRIAL (DCT): Free Stock Analysis
JONES LANG LASL (JLL): Free Stock Analysis
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