Mack-Cali Sells Elmsford Distribution Center for $70M
Real Estate In-Depth | January 2019
ELMSFORD, NY—Mack-Cali Realty Corp. in a deal that continues its exit from the flex-industrial warehouse business, has sold the six-building Elmsford Distribution Center here.
The Jersey City, NJ-based REIT sold the more than 386,000-square-foot industrial park complex to Realterm Logistics of Annapolis, MD for $70.25 million.
Mack-Cali noted that the disposition deal represents the next step the company’s plan to exit the flex-warehouse business, while simultaneously investing in the transformation of its office properties in Jersey City and developing its multifamily platform on that city’s waterfront. Mack-Cali recently sold industrial properties in Moorestown and Totowa, NJ.
Mack-Cali was represented in the deal by the HFF senior managing director Jose Cruz and directors Jordan Avanzato and Marc Duval.
“The sale of Elmsford Distribution Center serves as a significant milestone in our plan to strategically consolidate the Mack-Cali portfolio,” says Michael J. DeMarco, CEO of Mack-Cali. “While we expect the park’s new owner will experience leasing success in an industrial market that has seen strong rent growth in recent years, the disposition enables us to pay down debt levels from investments we made in creating our multifamily platform.”
Mack-Cali is in the midst of a $75-million multi-phase improvement plan for its Harborside office and retail portfolio in Jersey City.
The company also recently completed a $50-million capital transformation program for its portfolio of transit-oriented suburban office properties, including the comprehensive renovation of building exteriors, installation of state-of-the-art amenities and modernization of common areas.
Realterm Logistics announced last month it had acquired a best-in-class 362,000-square-foot high flow through parcel delivery facility in Boylston, MA. The firm is a vertically integrated owner and manager of high flow-through logistics facilities serving the transportation industry. Since 1997, Realterm Logistics has owned and managed in excess of $1 billion in assets, and more than 250 properties throughout the United States and Canada.