The planned purchase of Gale Real Estate plus interests in large Jersey office portfolios are to total about $545 million.Cranford-based Mack-Cali Realty (NYSE: CLI) today announced it has reached agreements in principle to buy privately owned Gale Real Estate Services Co. and to acquire about 2.8 million sq. ft. of office properties for its statewide portfolio. The planned transactions are valued at about $545 million.
As part of the deal, Gale Real Estate would retain its name and management team while operating as a Mack-Cali division. Gale is to maintain its headquarters in Florham Park, while Gale Holdings/International, which is based in New York City with offices in Boston and Asia, will remain as separate, privately held entities under Chairman Stanley C. Gale.
“This set of acquisitions, upon completion, would increase the size of our property portfolio by nearly 10% and cement Mack-Cali”s position as the dominant owner and manager of class A office properties in New Jersey, with significant penetration in the strongest sub markets,Â said Mitchell E. Hersh, Mack-Cali CEO.
Mack-Cali would acquire wnership interests in 12 premium office properties valued at $337 million, totaling 1.7 million sq. ft. of space in northern and central Jersey. Interests in the properties, now 95.1% leased, are to be transferred from a joint venture between SL Green (NYSE: SLG) and Gale Real Estate.
The Cranford REIT would also buy about one-half of the ownership interests in eight class A office properties valued at $168 million, totaling 1.1 million sq. ft. and also located in the northern half of the state. Interests in these properties would be acquired from a joint venture of SL Green and Stan Gale. The properties, currently 55.6% leased, would be leased and managed by Mack-Cali. Shares of the REIT fell $0.29 to $44.84 late this morning.