Mack-Cali Realty Corp. announced it has completed its acquisition of The Gale Real Estate Services Co. and interests in approximately 2.8 million square feet of office properties in New Jersey.
The total value of the deal was approximately $518 million.
The company also announced that Gale President Mark Yeager, while retaining his duties in that role, has been named as an executive vice president of Mack-Cali.
Mack-Cali President and Chief Executive Officer Mitchell E. Hersh, commented, “This transaction is a watershed event for Mack-Cali. It solidifies our dominant office market position in New Jersey and provides us with a powerful engine for further growth.”
In line with agreements previously announced, Mack-Cali acquired:
- The Gale Real Estate Services Co. for $12 million in cash, $10 million in common operating partnership units and up to an additional $18 million in cash based on a three-year earn-out.
- Substantially all the ownership interests in 13 class A office properties in northern and central New Jersey, valued at $378 million and totaling 1.9 million square feet. The interests in the properties were acquired from a joint venture of SL Green Realty Corp. and The Gale Real Estate Services Co.
- Approximately one-half of the ownership interests in seven class A office properties, also in northern and central New Jersey, valued at $127.5 million and totaling approximately 900,000 square feet. The interests were acquired from a joint venture of SL Green Realty Corp. and Stanley C. Gale.
Mack-Cali also acquired from an affiliate of The Gale Real Estate Service Co. a 10 percent ownership interest in a 550,000 square-foot office property located in Princeton, New Jersey for approximately $1.8 million in cash. In addition, Mack-Cali may also acquire ownership interests in up to 10 other properties, subject to third-party consents or other conditions, for approximately $24 million. The interests, which would be acquired from Stanley C. Gale and/or his affiliates, range from one to 50 percent and include office properties, developable land, and project development rights, all in Northern and Central New Jersey.
Mack-Cali’s acquisition of The Gale Real Estate Services Co. and the 20 office properties in which Mack-Cali owns substantially all or one-half of the ownership interests increases its holdings to 297 properties totaling 33.6 million square feet, including 165 properties totaling 21.9 million square feet in New Jersey.
Mack-Cali Realty Corp. is a fully integrated, self-administered, self-managed real estate investment trust.