Mack-Cali Completes its Acquisition of the Real Estate Interests
and Development and Management Businesses of Roseland Partners
EDISON, N.J., Oct. 24, 2012 /PRNewswire/ -- Mack-Cali
Realty Corporation (NYSE: CLI) today announced it has completed its
acquisition of the real estate development and management
businesses of Roseland Partners, L.L.C., a premier multi-family
residential community developer and operator in the Northeast, and
Roseland's interests in: six
operating multi-family properties totaling 1,769 apartments, one
condo-residential property totaling four units and four commercial
properties totaling approximately 212,000 square feet; 13
in-process development projects, which include nine multi-family
properties totaling 2,149 apartments, two garages totaling 1,591
parking spaces, and two retail properties totaling approximately
35,400 square feet; and interests or options in land parcels which
may support approximately 5,980 apartments, approximately 736,000
square feet of commercial space, and a 321-key hotel. The locations
of the properties extend from New
Jersey to Massachusetts.
The majority of the properties are located in New Jersey, in particular at its flagship
development at Port Imperial in Weehawken and West
New York, in addition to the Jersey City Waterfront and
other urban in-fill and transit-oriented locations.
The Roseland business and real
property interests were acquired for aggregate consideration of up
to $134.6 million, subject to
adjustment, consisting of $115.0
million in cash and approximately $4.0 million of assumed debt at closing and an
additional earn-out of up to $15.6
million in cash over the next three years, under certain
conditions. During the three-year earn-out period, each of
Roseland's principals,
Marshall Tycher, Brad Klatt, and Carl
Goldberg, will serve as co-presidents of Roseland Management
Services, L.P., a newly formed wholly owned subsidiary of
Mack-Cali, pursuant to employment
agreements executed at closing. Mitchell E.
Hersh, President and Chief Executive Officer of Mack-Cali
Realty Corporation, also will assume the role of Chairman and Chief
Executive of Roseland Management Services, L.P.
The transaction was financed through a combination of cash on
hand and borrowings under Mack-Cali's $600
million unsecured revolving credit facility.
Mr. Hersh commented, "This acquisition marks a fundamental step
in a strategic diversification for Mack-Cali wherein multi-family residential will be
a key component of our growth strategy. We are excited to welcome
the Roseland team to our
organization and we are confident that this platform will produce
strong results for our shareholders. We are poised to capitalize on
the many opportunities for growth resulting from this
transformational transaction. Roseland will enhance our opportunities to
deploy capital across a strategically positioned portfolio with an
integrated platform to address all elements of the real estate
development process. As well, we will now have enhanced
opportunities to utilize our land bank and repurpose existing
assets in a number of locations."
FTI Consulting and Eastdil Secured served as advisors on the
transaction. Dennis Block of
Greenberg Traurig represented Mack-Cali and Stanley
Schwartz of Orloff Lowenbach
Stifelman & Seigel represented Roseland.
Mack-Cali Realty Corporation is a fully integrated,
self-administered, self-managed real estate investment trust (REIT)
providing management, leasing, development, construction and other
tenant-related services for its class A real estate portfolio.
Mack-Cali owns or has interests in
281 properties consisting of 275 office and office/flex properties
totaling approximately 31.9 million square feet and six
multi-family rental properties containing over 1,700 residential
units, all located in the Northeast. The properties enable the
Company to provide a full complement of real estate opportunities
to its diverse base of commercial and residential tenants.
Additional information on Mack-Cali Realty Corporation is
available on the Company's website at www.mack-cali.com.
Statements made in this press release may be forward-looking
statements within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended. Forward-looking statements can be
identified by the use of words such as "may," "will," "plan,"
"potential," "should," "expect," "anticipate," "estimate,"
"continue," or comparable terminology. Such forward-looking
statements are inherently subject to certain risks, trends and
uncertainties, many of which the Company cannot predict with
accuracy and some of which the Company might not even anticipate,
and involve factors that may cause actual results to differ
materially from those projected or suggested. Readers are cautioned
not to place undue reliance on these forward-looking statements and
are advised to consider the factors listed above together with the
additional factors under the heading "Disclosure Regarding
Forward-Looking Statements" and "Risk Factors" in the Company's
Annual Reports on Form 10-K, as may be supplemented or amended by
the Company's Quarterly Reports on Form 10-Q, which are
incorporated herein by reference. The Company assumes no obligation
to update or supplement forward-looking statements that become
untrue because of subsequent events, new information or
otherwise.
Contacts:
Barry Lefkowitz
|
Ilene
Jablonski
|
Executive
Vice President
|
Vice
President of Marketing
|
and Chief
Financial Officer
|
Mack-Cali
Realty Corporation
|
Mack-Cali
Realty Corporation
|
(732)
590-1000
|
(732)
590-1000
|
|
SOURCE Mack-Cali Realty Corporation