On December 19, 2019, Mack-Cali Realty Corporation (NYSE: CLI) announced that it will be divesting all of its suburban office holdings — spanning 6.6 million square feet — in 2020, as recommended by its shareholder committee. The company has already approved the sale of two of its N.J. office portfolios to Onyx Equities for $285.0 million in cash and $3.5 million in assumed leases. The divestiture comes after the company exited the flex-warehouse business with the disposition of its remaining 56-building flex portfolio in the second quarter of 2019. It sold its 3.1-million-square-foot office/flex portfolio for $487.5 million.
Mack-Cali expects to complete the sale of its entire suburban office portfolio in 2020. After the completion of the suburban portfolio sale, Mack-Cali’s entire holdings will consist of its waterfront class A office portfolio of approximately 5 million square feet and its Roseland, N.J. multifamily operations.
Mack-Cali purchased Roseland Property Company in 2012. At the time, Roseland’s interest in multi-family residential property in New Jersey included six fully operational multi-family apartments as well as several luxury residential properties in the process of being developed.
Since then, Roseland has completed luxury residential developments alongside the Hudson River waterfront, including the $120-million RiverTrace waterfront tower at Port Imperial that was completed in October 2013. Roseland has interests in 6 operating multi-family properties totaling 1,769 apartment homes and 9 multi-family communities totaling 2,149 apartment homes in addition to ancillary commercial, retail and parking facilities.