Mack-Cali Realty Corporation has completed the first transaction in a 1031 exchange that will total over $820 million in value. The transaction is comprised of the purchase of Liberty Towers, a highly amenitized 648-unit residential tower on the Jersey City Gold Coast at the end of the third quarter and the to-be-completed sale of the Chase at Overlook Ridge and Alterra at Overlook Ridge located in Boston. The sale of the Overlook Ridge properties is expected to close by the end of October.
“We are pleased to further add to our portfolio on the highly desirable Jersey City waterfront through the efficient sale of a portion of our Boston multifamily properties and the purchase of Liberty Towers,” said Michael J. DeMarco, CEO. “This transaction allows us to further concentrate our capital on the waterfront where we believe our market share and operating familiarity with the community should allow us to enhance the performance of Liberty Towers.”
The Overlook Ridge properties will be sold to Rockpoint Group, L.L.C. for approximately $411.5 million. The properties, developed by Mack-Cali’s Roseland Residential Trust subsidiary were completed in 2014 and 2008, respectively. Proceeds from the sale of the Overlook properties will be used to fund the company’s purchase of Liberty Towers, a high-rise residential community, for $409 million which was initially financed with a $232 million mortgage and the company’s line of credit.
Liberty Towers features state of the art amenities including a yoga studio, a spin studio, a rooftop pool, a boxing gym and an on-site concierge. The tower features convenience retail including a pharmacy, a florist and a nail salon.
