1-31-20

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Announces sale of Parsippany and Giralda Office Properties Mack-Cali BOD decides to sell suburban office portfolio for $288.5 million

ISSUE HIGHLIGHTS Volume 32, Issue 2 Jan. 31 - Feb. 13, 2020

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ERSEY CITY, NJ — Mack-Cali Realty Cor- porat ion announced that the Board of Directors of the company, at its regularly scheduled meeting held on December 17, 2019, received the report and recommenda- tions of the Shareholder Value Committee and its financial advisors regarding the com- pany’s strategic direction and alternatives for maximizing stockholder value. As previous- ly announced, the Mack-Cali board formed the Shareholder Value Committee comprised of four independent directors following the company’s 2019 Annual Meeting of Stockhold- ers to review the Company’s strategic direction and make a recommendation to the full Board. Goldman Sachs &Co. LLC served as financial advi- sor to the Shareholder Value

Advisors, L.P. and Axonic Capital LLC, for an aggregate purchase price of $285 million in cash and $3.5 million of as- sumed lease obligations. The company plans to use the avail- able sales proceeds to pay down its corporate-level, unsecured indebtedness. Mack-Cali expects to com- plete the sale of its entire sub- urban office portfolio in 2020. After the completion of the suburban portfolio sale, Mack- Cali’s entire holdings will con- sist of its waterfront class A office portfolio of approximately 5.0 million s/f and the Roseland multi-family operations. Going forward, the Board will continue to consider the recommendations provided by the Shareholder Value Com- mittee regarding available alternatives for maximizing stockholder value. 

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SPOTLIGHTS 5-14A ECONOMIC DEVELOPMENT 2020 FORECAST

Parsippany buildings - photo credit: Ben Gancsos Photography

Committee. Mack-Cali also announced that, based on the recommen- dations of the Shareholder Value Committee, the board has determined to sell the com- pany’s entire suburban office portfolio totaling 6.6 million s/f of office space. As the first step of the company’s plan to sell

its suburban office assets, the board has approved the sale of two suburban office portfolios consisting of 2.4 million s/f of office space located in Parsip- pany and Madison, NJ, or 36% of the s/f of the company’s suburban holdings, to Onyx Equities, LLC in partner- ship with Taconic Capital

Section C

UPCOMING CONFERENCES February 13, 2020 NJ Commercial Real Estate Forecast Conference February 27, 2020 PA Commercial Real Estate Forecast Conference For speaking and sponsorship information, please contact: Lea at 781-740-2900 or lea@marejournal.com

Domenico of Progress Capital arranges $85 million loan for Bronx mixed-use building

baking facility for the Great Atlantic & Pacific Tea Com- pany, also known as A&P and later became the world’s larg- est warehouse and rebuilding facility for food processing equipment for Union Standard Equipment Company. In 2016, the building was purchased in partnership by the Bluestone Group, the Altmark Group, Madison Realty Capital and Galil Management who recently finished a $45 million renova- tion on the building to include new mechanicals, new eleva- tors, new ground floor retail space, office space, industrial space with private parking, a roof deck and a penthouse with 20-foot ceilings. Today, the building is now known as ‘Union Crossing’. The property welcomed its first tenant, Westhab, in Q4 of 2019, which currently occupies 8,233 s/f of space used for their execu- tive offices and a job training center. Westhab is a non-profit organization that develops quality affordable housing and provides youth programs and

BRONX, NY — Brad Do- menico , partner at Progress Capital arranged an $85 mil-

lion loan to refinance 825 East 141st St. located in the Port Morris section of the Bronx. Originally

constructed in 1916, the building once served as a major Brad Domenico

Directory Economic Development. ..................................5-14A Retail Development Reimagined....................15-19A Organization Events Calendar..............................22A People on the Move............................................24A Owners, Developers & Managers............... Section B 2020 Forecast....................................... Section C www.marej.com

Union Crossing

Domenico negotiated a LI- BOR floating loan to replace the construction loan and provide necessary funds to allow for tenant improvements and leas- ing commissions during lease up. LibreMax Capital , a New York based asset management firm, provided the debt. Progress Capital is a com- mercial real estate advisory firm with over $40 Billion in closed loans and $150 Million of directly funded bridge loans. 

employment services. 260,000 s/f of space remains available for lease. Union Crossing is conve- niently located two blocks from the number 6 train and the Bruckner Expressway. Access to connective rail lines drove the early development of the Port Morris waterfront around the turn of the 20th Century and major transportation ar- teries continue to define the neighborhood today.

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