300 Tice Blvd. in Woodcliff Lake — Courtesy: HFF
By Joshua Burd
With a continued focus on right-sizing its office holdings, Mack-Cali Realty Corp. is looking to sell a sprawling nine-building, 2.2 million-square-foot portfolio in Bergen County.
According to HFF, the exclusive broker for the properties, the offering “is one of the largest office portfolios ever on the market in New Jersey.”
The portfolio includes buildings in Paramus, Woodcliff Lake and Rochelle Park, all concentrated along the Garden State Parkway corridor, HFF said. All told, they account for more than 40 percent of the Upper Bergen County and Route 4 and 17 submarkets, with tenants such as Wells Fargo, UBS and KPMG anchoring the space.
The largest among them is 650 From Road in Paramus, a 369,686-square-foot complex built in 1978, HFF said. The other properties, which were built between 1979 and 1991, include:
- 140 East Ridgewood Ave., Paramus (247,551 square feet)
- 15 East Midland Ave., Paramus (259,823 square feet)
- 61 South Paramus Road, Paramus (279,789 square feet)
- 461 From Road, Paramus (256,511 square feet)
- 300 Tice Blvd., Woodcliff Lake (238,670 square feet)
- 50 Tice Blvd., Woodcliff Lake (246,472 square feet)
- 365 West Passaic St., Rochelle Park (216,869 square feet)
- 395 West Passaic St., Rochelle Park (105,079 square feet)
HFF is marketing the portfolio for its value-add potential. Overall occupancy is nearly 72 percent, with individual occupancies ranging from 64.4 percent to 95.4 percent.
In a marketing bulletin, the brokerage said the portfolio “provides investors the ability to collect a stable and sizable cash flow while also offering the opportunity to create approximately $20 million dollars of additional gross annual revenue by fully stabilizing the assets.” Rent increases are scheduled for more than 50 percent of the tenants, while the average weighted lease term across the portfolio is 5.16 years.
The offering is the latest in a flurry of capital markets activity for Mack-Cali in recent years. Leaders of the real estate investment trust have been vocal about plans to focus on core office submarkets such as the Hudson waterfront, Metropark and Parsippany, while shedding buildings in fringe locales such as Upper Bergen County
In late September, brokers announced that a private investment group had acquired a 208,000-square-foot former Mack-Cali building in Upper Saddle River for $19.7 million.
Other tenants in the Bergen County portfolio include New Cingular Wireless, Movado and Suez Water Management, HFF said. There is 626,658 square feet of vacant space.
The buildings are accessible to the Parkway and other major throughways, including Route 17, Route 4 and Interstate 80.
The HFF marketing team, which is handling the assignment on an exclusive basis, includes Jose Cruz, Kevin O’Hearn, Stephen Simonelli, Michael Oliver, Marc Duval and Mark Mahasky. Jon Mikula is heading the financing effort.