Prime Office Property Part of Keystone's Acquisition of Tri-State Area Portfolio
MORRIS TOWNSHIP, N.J. (July 1, 2014) - Keystone Property Group, a leading real estate investor, manager and developer of office and industrial properties, today announced that it has closed on the acquisition of 412 Mt. Kemble Avenue in Morris Township, N.J. for approximately $45.4 million from Mack-Cali Realty Corporation (NYSE: CLI). Earlier this year, Keystone and Mack-Cali entered into agreements to form various joint ventures to acquire the property as part of a larger portfolio of office properties that Mack-Cali owns throughout Northern New Jersey, New York, and Connecticut.
412 Mt. Kemble Avenue, positioned in the heart of Morris County's prestigious corporate corridor, is comprised of three, three-story buildings totaling 475,100 square feet. The buildings, which are connected by two full-height atriums, offer a variety of high-grade offices, including a large block of headquarters-quality space. Keystone plans to invest approximately $5.9 million in the property to improve building systems and infrastructure, amenities, and overall curb appeal.
"412 Mt. Kemble Avenue fits ideally with our mission to invest thoughtfully and strategically in well-located assets that can be reinvigorated through reinvestment," commented Bill Glazer, President of Keystone Property Group. "The property offers high upside, with the opportunity to lease in the highly desirable corporate corridor in Morris County."
Earlier this quarter, Keystone closed on three other New Jersey commercial properties including 30 Knightsbridge Road in Piscataway, 470 Chestnut Ridge Road in Woodcliff Lake, and 530 Chestnut Ridge Road in Woodcliff Lake as part of the company's portfolio deal with Mack-Cali. Reflecting the ownership's strategy for the portfolio, Keystone will reinvest in the properties through redevelopment, management and upgrades to each site. Through its partnership with Keystone, Mack-Cali will participate in value creation above certain hurdle rates, handle leasing of the portfolio, as well as share in management fees.
Mitchell E. Hersh, President and Chief Executive Officer of Mack-Cali, added, "We're excited to close on 412 Mt. Kemble, as we continue to invest in more strategic growth opportunities. We are confident that, through an aggressive leasing initiative, the partnership can effectively capitalize on this property's prime market position."
412 Mt. Kemble Avenue currently offers a variety of amenities for tenants, including a fitness center, café, executive parking garage, and dual power feeds. The buildings are convenient to several major thoroughfares, including Route 287 and Route 202, and is located only minutes from the heart of Morristown.
About Keystone Property Group
Keystone Property Group is a leading real estate investor and developer, with offices located in Bala Cynwyd, Pa.; Miami, Fla.; and New York, NY. Keystone also sponsors and manages a series of opportunistic real estate investment funds. Keystone creates value for its investors through development, redevelopment, financing, leasing, property management and asset management. The company has been recognized by Inc. 500 magazine, the Entrepreneurs' Forum and the Wharton Small Business Center, and several of its projects have earned "Best Real Estate Awards" from the Philadelphia Business Journal and BOMA (Chicago). For more information, please visit www.keystonepropertygroup.com.
About Mack-Cali Realty Corporation
Mack-Cali Realty Corporation is a fully integrated, self-administered, self-managed real estate investment trust (REIT) providing management, leasing, development, construction and other tenant-related services for its class A real estate portfolio. Mack-Cali owns or has interests in 280 properties, consisting of 267 office and office/flex properties totaling approximately 31.6 million square feet and 13 multi-family rental properties containing approximately 3,900 residential units, all located in the Northeast. The properties enable the Company to provide a full complement of real estate opportunities to its diverse base of commercial and residential tenants.
Statements made in this press release may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can be identified by the use of words such as "may," "will," "plan," "potential," "should," "expect," "anticipate," "estimate," "continue," or comparable terminology. Such forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which Mack-Cali Realty Corporation ("MCRC") cannot predict with accuracy and some of which MCRC might not even anticipate, and involve factors that may cause actual results to differ materially from those projected or suggested. Readers are cautioned not to place undue reliance on these forward-looking statements and are advised to consider the factors listed above together with the additional factors under the heading "Disclosure Regarding Forward-Looking Statements" and "Risk Factors" in MCRC's Annual Reports on Form 10-K, as may be supplemented or amended by MCRC's Quarterly Reports on Form 10-Q, which are incorporated herein by reference. MCRC assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise.
Additional information on Mack-Cali Realty Corporation and the commercial real estate properties and multi‑family residential communities available for lease can be found on the Company's website at www.mack‑cali.com.