Short Hills Office Portfolio Sells for $255 Million

Last week, Mack-Cali Realty Corporation announced the sale of its New Jersey Short Hills office portfolio to The Birch Group for $255 million. The portfolio is made up of four office buildings on JFK Parkway, which encompass 843,300 total square feet.

Cushman & Wakefield’s Capital Markets team arranged the transaction, which resulted in all four buildings being traded as a cohesive portfolio for the first time. David Bernhaut led the assignment alongside Andy Merin, Gary Gabriel, Frank DiTommaso, and Seth Zuidema, in conjunction with Adam Spies and Kevin Donner. The team was supported by Cushman & Wakefield’s Equity, Debt and Structured Finance team of John Alascio, Alex Hernandez, Chuck Kohaut, and TJ Sullivan.

This latest sale released approximately $100 million of net proceeds and follows Mack-Cali’s $254 million sale of its Metropark portfolio to Opal Holdings last month.

“This transaction represents yet another significant step towards simplifying our company through the disposition of suburban office properties while generating liquidity to pay down corporate debt and strengthen our balance sheet,” said Mahbod Nia, Chief Executive Officer of Mack–Cali. “I would like to thank the team for their hard work and commitment to closing this complex transaction expeditiously.”

“The Short Hills disposition continues our strong sales momentum in the suburban office market and reinforces our ability to achieve our goals at a solid pace without sacrificing value,” added Ricardo Cardoso, Executive Vice President and Chief Investment Officer of Mack-Cali. “While we have reached a significant milestone in our sales process, we continue to work diligently to finalize terms on our remaining non-core commercial assets.”

Mack-Cali Realty Corporation is a real estate investment trust (REIT) headquartered in Jersey City, NJ.