Mack-Cali Realty Corp. on Thursday announced its board of directors said it will sell the company’s entire suburban office portfolio — totaling approximately 6.6 million square feet of office space.
As the first step, the board approved the sale of two suburban office portfolios consisting of about 2.4 million square feet in Parsippany and Madison to Onyx Equities LLC, in partnership with Taconic Capital Advisors LP and Axonic Capital LLC, for an aggregate purchase price of approximately $285 million in cash and approximately $3.5 million of assumed lease obligations.
The company plans to use available sales proceeds to pay down corporate-level, unsecured indebtedness.
The news was received at its regularly scheduled meeting on Dec. 17, 2019, which included a full report and recommendations of the Shareholder Value Committee and its financial advisors regarding Mack-Cali’s strategic direction and alternatives for maximizing stockholder value.
Mack-Cali expects to complete the sale of its entire suburban office portfolio in 2020. After the completion of the suburban portfolio sale, Mack-Cali’s entire holdings will consist of its waterfront class A office portfolio of approximately 5 million square feet and its Roseland multifamily operations.
The Mack-Cali board formed the Shareholder Value Committee, comprised of four independent directors, following the company’s 2019 Annual Meeting of Stockholders to review the company’s strategic direction and make a recommendation to the full board. Goldman Sachs & Co. LLC served as financial advisor to the Shareholder Value Committee.
Going forward, the board will continue to consider the recommendations provided by the Shareholder Value Committee regarding available alternatives for maximizing stockholder value.