Wednesday, February 26, 2014

Keystone pays $230M for Mack-Cali portfolio



Keystone Property Group is expanding its reach north and has agreed to spend $230.8 million to buy 2.3 million square feet of office space from Mack-Cali Realty Corp.

This marks the fifth transaction the Bala Cywynd, Pa., real estate company has struck with Mack-Cali. Keystone is growing its portfolio and reach while Mack-Cali is refashioning itself as a multi-family developer.

In this latest deal, Keystone will buy a dozen properties in Northern New Jersey, New York and Connecticut. Of the $230.8 million, $201.7 million will be paid in cash while the remainder will be debt.

Last year, Mack-Cali, based in Edison, N.J., exited the suburban Philadelphia office market when Keystone bought 14 office properties and three parcels from it. The two partnered to buy the Dow building at 100 Independence Mall West.

Keystone plans to reposition the office properties to reflect how office tenants and employees use space today. Office environments increasing have more amenities that aim to help employers attract and retain employees and stay competitive.

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