Mack-Cali To Sell Suburban Philadelphia Commercial Real Estate Portfolio Via JV

(RTTNews) - Mack-Cali Realty Corp. (CLI) announced Thursday that it entered into agreements to form various joint ventures with a fund sponsored by Keystone Property Group to facilitate the sale of Mack-Cali's 15 commercial office properties and three land parcels located throughout Suburban Philadelphia.

As per the agreements, the portfolio will be sold for approximately $233 million: $201 million in cash, a $10 million mortgage secured by One Plymouth Meeting, and subordinated interests in the portfolio with capital accounts aggregating $22 million.

Mack-Cali shall participate in management fees and 50 percent of value creation above certain hurdle rates. Mack-Cali said it will also receive majority interest in a land parcel in Bala Cynwyd, Pennsylvania, for multi-family residential development. As part of the transaction, Mack-Cali retains the rights to subdivide and develop multi-family residential units at 150 Monument Road in Bala Cynwyd.

The portfolio of assets includes approximately 1.663 million square feet of existing office properties and land that can accommodate future development of about 162,000 square feet.

The sale is subject to the purchaser's completion of due diligence by August 19, which may be extended, and normal and customary closing conditions. The company anticipates a late 2013 closing.

Mack-Cali previously sold its Moorestown Corporate Center in Moorestown, New Jersey, and its 16 and 18 Sentry Park West in Blue Bell, Pennsylvania, to Keystone.