Mack-Cali Realty Corp. agreed to form a series of 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 for $233 million.
The portfolio of assets includes approximately 1.7 million square feet of existing office properties and land that can accommodate future development of approximately 162,000 square feet.
The portfolio sale will include $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.
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Under the arrangement with Keystone, Mack-Cali will manage the properties and participate in management fees and 50% of value creation above certain hurdle rates. Mack-Cali will also receive majority interest in a land parcel in Bala Cynwyd planned for multifamily residential development. Also as part of the transaction, Mack-Cali retains the rights to subdivide and develop multifamily residential units at 150 Monument Road in Bala Cynwyd.
The sale is subject to the purchaser’s completion of due diligence by Aug. 19. Mack-Cali anticipates a late 2013 closing.
Mack-Cali previously sold its Moorestown Corporate Center in Moorestown, N.J., and its 16 and 18 Sentry Park West in Blue Bell, Pennsylvania, to Keystone.
The properties tinvolved in this transaction consist of:
Property Address # Bldgs SF
• 150 Monument Road, Bala Cynwyd 1 125,783
• 1000-1235 Westlakes Drive, Westlakes Office Park, Berwyn 4 444,350
• 4 & 5 Sentry Park, Blue Bell 3 193,930
• 100-300 Stevens Drive, Airport Business Center, Lester 3 371,000
• 1000 Madison Avenue, Lower Providence 1 100,700
• Rose Tree Corporate Center I and II, 1400 N. Providence Road, Media 2 260,000
• One Plymouth Meeting, 502 W. Germantown Pike, Plymouth Meeting 1 167,748
Total: 15 1,663,511
The land parcels to be included in this transaction are located at:
• Airport Business Center, Lester 135,000 sf
• Rose Tree Corporate Center, Media 15,200 sf
• Westlakes Office Park, Berwyn 12,000 sf
Total: 162,200 sf
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