Mack-Cali Board of Directors Determines to Sell Suburban Office Portfolio

JERSEY CITY, N.J., Dec. 19, 2019 /PRNewswire/ -- Mack-Cali Realty Corporation (NYSE: CLI) today announced that the Board of Directors of the Company, at its regularly scheduled meeting held on December 17, 2019, received the report and recommendations of the Shareholder Value Committee and its financial advisors regarding the Company's strategic direction and alternatives for maximizing stockholder value.  As previously announced, the Mack-Cali Board formed the Shareholder Value Committee comprised of four independent directors following the Company's 2019 Annual Meeting of Stockholders to review the Company's strategic direction and make a recommendation to the full Board.  Goldman Sachs & Co. LLC served as financial advisor to the Shareholder Value Committee.

Mack-Cali also announced that, based on the recommendations of the Shareholder Value Committee, the Board has determined to sell the Company's entire suburban office portfolio totaling approximately 6.6 million square feet of office space.  As the first step of the Company's plan to sell its suburban office assets, the Board has approved the sale of two suburban office portfolios consisting of approximately 2.4 million square feet of office space located in Parsippany, New Jersey and Madison, New Jersey, or approximately 36% of the square footage of the Company's suburban holdings, to Onyx Equities, LLC in partnership with Taconic Capital Advisors, L.P. and Axonic Capital LLC, for an aggregate purchase price of approximately $285 million in cash and approximately $3.5 million of assumed lease obligations.  The Company plans to use the available sales proceeds to pay down its corporate-level, unsecured indebtedness. 

Mack-Cali expects to complete the sale of its entire suburban office portfolio in 2020.  After the completion of the suburban portfolio sale, Mack-Cali's entire holdings will consist of its waterfront class A office portfolio of approximately 5.0 million square feet and the Roseland multi-family operations.

Going forward, the Board will continue to consider the recommendations provided by the Shareholder Value Committee regarding available alternatives for maximizing stockholder value.

About Mack-Cali Realty Corporation

One of the country's leading real estate investment trusts (REITs), Mack-Cali Realty Corporation is an owner, manager and developer of premier office and multifamily properties in select waterfront and transit-oriented markets throughout the Northeast. Mack-Cali is headquartered in Jersey City, New Jersey, and is the visionary behind the city's flourishing waterfront, where the company is leading development, improvement and place-making initiatives for Harborside, a master-planned destination comprised of class A office, luxury apartments, diverse retail and restaurants, and public spaces.

A fully-integrated and self-managed company, Mack-Cali has provided world-class management, leasing, and development services throughout New Jersey. By regularly investing in its properties and innovative lifestyle amenity packages, Mack-Cali creates environments that empower tenants and residents to reimagine the way they work and live.

Statements made in this press release may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can be identified by the use of words such as "may," "will," "plan," "potential," "projected," "should," "expect," "anticipate," "estimate," "target," "continue," or comparable terminology. Such forward-looking statements are inherently subject to certain risks, trends and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate and involve factors that may cause actual results to differ materially from those projected or suggested. Readers are cautioned not to place undue reliance on these forward-looking statements and are advised to consider the factors listed above together with the additional factors under the heading "Disclosure Regarding Forward-Looking Statements" and "Risk Factors" in the Company's Annual Reports on Form 10-K, as may be supplemented or amended by the Company's Quarterly Reports on Form 10-Q, which are incorporated herein by reference. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise.

SOURCE Mack-Cali Realty Corporation