Mack-Cali to Buy Minority Stake in NYC Office Tower

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Mack-Cali Realty Corp. today reached an agreement with New York City-based commercial office landlord SL Green Realty Corp. to purchase the latter’s condominium interests in 125 Broad Street, a downtown ManhattanMack-Cali Realty Corp. (NYSE: CLI) today reached an agreement with New York City-based commercial office landlord SL Green Realty Corp. to purchase the latter’s condominium interests in 125 Broad Street, a downtown Manhattan office tower, for $273 million. The condominium units being acquired include floors 2-16, and collectively comprise 39.6 percent, or 524,500 square feet, of the property.

The investment in 125 Broad Street marks Mack-Cali’s entry into the New York City office market. The company owns a large property portfolio with additional development sites on the Jersey City waterfront, and recently indicated that it would seek to fuel its growth as a company by investing in Manhattan.

125 Broad Street, which was built in 1970 by Kahn & Jacobs and Carson Lundin & Shaw, is a 40-story class A building located in the downtown Manhattan financial district. The property is 100 percent occupied. Tenants include Citigroup, Oppenheimer and Ark Asset Management.

In a related transaction, Mack-Cali said it would sell a four-story, 121,500 square-foot office building at 500 West Putnam Avenue in Greenwich, Conn., to SL Green for $56 million. Mack-Cali acquired the property, which is 96 percent leased, in 1998 for $17.8 million.

Shares of Mack-Cali traded at $48.45, down $0.22, in the early afternoon.