Home Fairfield Stamford property sold as part of 12-building deal

Stamford property sold as part of 12-building deal

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Pennsylvania-based developer Keystone Property Group and New Jersey-based Mack-Cali Realty Corp., owner, manager and developer of office and class A residential real estate throughout the Northeast, have entered into agreements whereby Keystone will purchase 12 office properties owned by Mack-Cali in northern New Jersey, New York and Connecticut.

Soundview Plaza at 1266 East Main St. in Stamford, totaling 179,610 square feet, is among the properties.

The deal involves approximately 2.3 million square feet, purchased for approximately $230.8 million, including $201.7 million in cash, “with the balance in the form of senior and subordinated equity.”

The transaction represents the fifth deal between Keystone and Mack-Cali “as part of Keystone’s strategy to expand its regional footprint by investing in high-quality commercial assets and repositioning them to create dynamic, lifestyle-oriented business environments.”

Last year, Keystone closed on its acquisition of 14 institutional-quality commercial office properties and three land parcels located in suburban Philadelphia through a joint venture with Mack-Cali. That deal was followed by three more large purchases by the companies, one in Philadelphia (with which they worked with a third company) and two in New Jersey.

Other properties in the purchase agreement include:
• two buildings in Taxter Corporate Park in Elmsford, N.Y., totaling 344,563 square feet;
• 570 Taxter Road in Elmsford N.Y., totaling 77,859 square feet;
• two buildings in Talleyrand Office Park in Tarrytown, N.Y., totaling 175,749 square feet; and
• another six buildings in northern New Jersey.

Mack-Cali will participate in management fees for the portfolio and a percentage of value creation above certain hurdle rates, according to a statement from the companies, and retain a senior “pari-passu equity position” at three properties in Elmsford. As part of the transaction, Mack-Cali and Keystone will jointly provide leasing representation.

“This transaction is another step forward in our strategy to redeploy capital into our multi-family platform, while participating in the upside that will be created by the repositioning of this portfolio,” said Mitchell E. Hersh, president and CEO of Mack-Cali. “We look forward to building on our partnership with Keystone and further strengthening our market position by drawing on the synergies of our collective expertise and relationships.”

“The deal is still subject to customary due diligence and the waiver or nonexercise of certain rights of first offer with respect to most of the properties in this portfolio by certain third parties,” the company said in prepared statement. Mack-Cali anticipates that most, if not all, of these rights will be waived or not exercised, but no assurances can be given to that effect.

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