Jones Lang LaSalle
Mack-Cali Completes Gale Acquisition
By Eric Peterson
CRANFORD, NJ-Mack-Cali Realty Corp., based here, has completed its previously announced acquisition of the Gale Real Estate Services Co., Florham Park, as well as interests in some 2.8 million sf of office properties in New Jersey. As part of the deal, Gale president Mark Yeager will continue in that role and add the title of executive vice president of Mack-Cali.
"This is a watershed event for Mack-Cali," says Mitchell E. Hersh, the REIT's president and CEO. "It solidifies our dominant market position, and it provides us with a powerful engine for further growth."
As reported earlier, the deal calls for Mack-Cali to pay $12 million in cash, $10 million in common shares and up to another $18 million in cash based on a three-year earn-out for Gale Real Estate Services. During that period, Stan Gale will serve as non-executive vice chairman of Gale Real Estate. Hersh will be the company's chairman and CEO in addition to his Mack-Cali duties.
The deal also calls for Mack-Cali to pay $378 million to a joint venture of Gale and SL Green Realty for 13 class A office properties totaling 1.9 million sf in Northern and Central New Jersey. Mack-Cali is also spending $127.5 million to buy one-half ownership interests from Gale and SL Green in seven class A office properties totaling 900,000 sf in Northern and Central New Jersey, and is paying Gale another $1.8 million for a 10% interest in a 550,000-sf office property in Princeton.
Finally, under the terms of the deal, Mack-Cali may also acquire ownership interests in up to 10 other properties, subject to third-party consent and other conditions, for approximately $24 million. The interests, which would be acquired from Stan Gale and/or his affiliates, range from 1% to 50%, and include office properties, developable land and project development rights.
According to information released by Mack-Cali, the acquisition transactions are being financed through the assumption of mortgage debt, the placement of new mortgage debt, credit facility drawings, cash and the issuance of nearly 225,000 common operating partnership units valued at $44.50 per unit.
Copyright © 2006 ALM Properties, Inc. All rights reserved. Reproduction in whole or in part without permission is prohibited.
Mack-Cali Completes Gale Acquisition
By Eric Peterson
CRANFORD, NJ-Mack-Cali Realty Corp., based here, has completed its previously announced acquisition of the Gale Real Estate Services Co., Florham Park, as well as interests in some 2.8 million sf of office properties in New Jersey. As part of the deal, Gale president Mark Yeager will continue in that role and add the title of executive vice president of Mack-Cali.
"This is a watershed event for Mack-Cali," says Mitchell E. Hersh, the REIT's president and CEO. "It solidifies our dominant market position, and it provides us with a powerful engine for further growth."
As reported earlier, the deal calls for Mack-Cali to pay $12 million in cash, $10 million in common shares and up to another $18 million in cash based on a three-year earn-out for Gale Real Estate Services. During that period, Stan Gale will serve as non-executive vice chairman of Gale Real Estate. Hersh will be the company's chairman and CEO in addition to his Mack-Cali duties.
The deal also calls for Mack-Cali to pay $378 million to a joint venture of Gale and SL Green Realty for 13 class A office properties totaling 1.9 million sf in Northern and Central New Jersey. Mack-Cali is also spending $127.5 million to buy one-half ownership interests from Gale and SL Green in seven class A office properties totaling 900,000 sf in Northern and Central New Jersey, and is paying Gale another $1.8 million for a 10% interest in a 550,000-sf office property in Princeton.
Finally, under the terms of the deal, Mack-Cali may also acquire ownership interests in up to 10 other properties, subject to third-party consent and other conditions, for approximately $24 million. The interests, which would be acquired from Stan Gale and/or his affiliates, range from 1% to 50%, and include office properties, developable land and project development rights.
According to information released by Mack-Cali, the acquisition transactions are being financed through the assumption of mortgage debt, the placement of new mortgage debt, credit facility drawings, cash and the issuance of nearly 225,000 common operating partnership units valued at $44.50 per unit.
Copyright © 2006 ALM Properties, Inc. All rights reserved. Reproduction in whole or in part without permission is prohibited.
posted by Jones Lang LaSalle NJ News Blog at 2:06 PM
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