The deal will be made up of $97.9 million of common operating partnership units in Mack-Cali and the assumption of about $63.8 million of mortgage debt.Mack-Cali Realty (NYSE: CLI) today announced that it has contracted to acquire all the interests in Capital Office Park, an 842,300-sq.-ft, seven-building class A office complex in Greenbelt, Maryland, for about $161.7 million. The deal, which is expected to close no later than the end of the first quarter of 2006, will be made up of $97.9 million of common operating partnership units in Mack-Cali Realty and the assumption of approximately $63.8 million of mortgage debt.
At closing, the sellers may elect to receive approximately $27.9 million in cash in lieu of common operating partnership units. Cranford-based Mack-Cali also has the option to pick up 43 acres of adjacent land for some $13 million. The land can support the development of up to 600,000 sq. ft. of office space.
The office complex, located about 12 miles from Washington, D.C, in Greenbelt, Maryland, is 84.6% leased to 90 tenants, including Hewlett-Packard, the U.S. General Services Administration, Verizon Communications and Lockheed Martin.
Mack-Cali Realty is a self-administered, self-managed real estate investment trust that currently owns or has interests in 271 properties totaling approximately 30.2 million sq. ft. Company shares were up $0.12 to $44.07 in morning trading.