The real estate investment trust, Mack-Cali possesses a 525,000-square-foot commercial condo unit at 125 Broad St. This single New York property is currently being unloaded by the company.
It appears that the restructuring of the company resulted in the selling of their Manhattan property. Crains New York Business earlier revealed that Mack-Cali aims to eliminate its real estate holding in New York City as part of its divestitures.
Mack-Cali bought the unit in 2007 for $273 million from SL Green Realty Corp. The 525,000-square-foot condo comprises of floors two to 16 at 125 Broad St. The property sits on a 40-story, 1.3 million-square-foot office tower as further reported by Crains New York Business.
As the real estate company unloads the property, they are aiming for at least $300 million return for it. Mack-Cali has also shifted its marketing strategy and focus. Mitch Rudin, Mack-Cali's chief executive said 'Our team is committed to unlocking value for our stakeholders by refocusing the company to take advantage of our Class A assets and expanding our luxury multifamily holdings.'
It has been observed that the prices for the office buildings in lower Manhattan have increased sharply in previous years as more tenants, particularly creative companies, have congregated downtown. The company is firmly motivated to push through with the sale. Mack-Cali is even willing to hire brokers to help in the disposal of the properties selected to be sold.
As a real investment trust company, Mack-Cali has come a long way. According to a recent post by The Real Deal, "The firm owns 29.7 million square feet of office space and 19 multifamily rental buildings containing roughly 5,700 units in the Northeast."
The Manhattan property is not the only property that Mack-Cali has disposed recently. Mack-Cali sold 3 of its workplace structures at the Moorestown Corporate Center, totaling 0.2 million square feet in Moorestown, N.J. The net sales profits were $19.4 million, and it suffered a loss of around $0.1 million from the sale.
Yahoo Finance previously reported that, "As of Dec 31, 2012, Mack-Cali had total debt of $2.2 billion, with a weighted average annual interest rate of 5.86 percent." Yahoo Finance further reported that, "Its debt-to-undepreciated assets ratio was 36.7 percent, and cash equivalents of $58.2 million.
