Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Monday, 06 August 2018

Mack-Cali Nears Completion of Repositioning; Eyes Sale of Flex Properties

Mack-Cali Realty Corp., which in 2015 embarked on a massive repositioning of its property portfolio, expects to complete that effort this year with the disposition of another $170 million of properties. It’s now planning on selling its industrial-flex portfolio, most of which is in Westchester County, N.Y., and could be worth $550 million.

Commercial Real Estate Direct Staff Report

Mack-Cali Realty Corp., which in 2015 embarked on a massive repositioning of its property portfolio, expects to complete that effort this year with the disposition of another $170 million of properties.

Meanwhile, the Jersey City, N.J., REIT is eying the sale of its 3.1 million square feet of industrial-flex space, most of which is in Westchester County, N.Y. That portfolio could be worth $550 million.

But because many of the flex properties predate Mack-Cali’s 1997 acquisition of Robert Martin Co., the company could be left open to potentially large capital-gains taxes, it’s likely to structure some sales transactions in a tax-advantaged manner. That would mean that some proceeds would be plowed into new investments.

Its flex portfolio is concentrated in four geographic areas: Elmsford, Hawthorne and Yonkers, N.Y., and Stamford, Conn. As of the end of last year, the portfolio was 90.8 percent occupied and generated monthly rents of $16.38/sf.

The portfolio is expected to be brought to market by next year. According to Michael DeMarco, the company’s chief executive, the...





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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

REITCafe

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