Mack-Cali Vends Pennsylvania Assets - Analyst Blog

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Recently, Mack-Cali Realty Corp. ( CLI ) divested 2 of its Pa.-based office buildings - 16 and 18 Sentry Park West - to a fund supported by Keystone Property Group.The deal helped the real estate investment trust (REIT) to reap about $19.3 million which it aims to redeploy for funding its other strategic growth prospects.

Located in the Blue Bell submarket, 16 and 18 Sentry Park West are mirror-image, 4-story office buildings that stretch 93,093 square feet and 95,010 square feet, respectively.  Notably, Mack-Cali holds an approved passive economic interest in both the assets, subject to their future performance.  

The aforementioned transaction will boost the company's strategy of repositioning its portfolio through the disposal of non-strategic assets and acquisition of high-quality properties. This will go a long way in enhancing its top-line growth.


Earlier this month, Mack-Cali sold a Clifton, N.J. office building to a joint venture (JV) of Gottesman Real Estate Partners and Mountain Development Corp. (MDC) for $5.8 million. It also divested another N.J.-based asset - Mack-Cali Airport property - located in Little Ferry for about $32.3 million, in this month.

On the other hand, 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. ( PRU ).

Additionally, the company entered the DC multifamily market through the buyout of Crystal House. The property was acquired through a JV with a fund advised by UBS Global Asset Management of UBS AG ( UBS ). We believe such restructuring efforts will ultimately help the company diversify its assets and remain poised for growth in the future.

Mack-Cali currently carries a Zacks Rank #3 (Hold). Better performing REITs include CommonWealth REIT ( CWH ) with a Zacks Rank #1 (Strong Buy).



MACK CALI CORP (CLI): Free Stock Analysis Report

COMMONWEALTH RE (CWH): Free Stock Analysis Report

PRUDENTIAL FINL (PRU): Free Stock Analysis Report

UBS AG (UBS): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: CLI , CWH , MDC , PRU , UBS

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