Jones Lang LaSalle


Mack-Cali made $15 million selling REIT shares
by Catherine Tymkiw
March 07, 2006

Mack-Cali Realty Corp. said it gained $15.1 million by selling its stake in CarrAmerica Realty Corp., another real estate investment trust.

Mack-Cali Realty Corp. said it gained $15.1 million by selling its stake in CarrAmerica Realty Corp., another real estate investment trust that is being acquired by buyout firm the Blackstone Group.

Cranford, N.J.-based Mack-Cali previously owned 1.8 million shares of Washington, D.C.-based CarrAmerica worth $63 million, according to a Feb. 23 filing with the Securities and Exchange Commission. It bought 1.5 million shares last year and another 336,500 shares in January.

On Tuesday, a day after the $5.6 billion Blackstone buyout was announced, Mack-Cali said it sold its stake for an average price of $43.55 a share -- a 24% premium over the average price it had paid. The sale totaled about $78 million.

"We are pleased that our investment on behalf of our shareholders has paid off substantially," said Mack-Cali Chief Executive Mitchell Hersh in a statement.

Mack-Cali has expanded its commercial real estate portfolio with several recent purchases in New Jersey. It has interests in 277 properties totaling 30.9 million square feet in the Northeast.