Elmsford Distribution Center in Greenburgh — Courtesy: HFF
By Joshua Burd
Mack-Cali Realty Corp. has reaped more than $70 million from the sale of a six-building industrial park in Westchester County, New York, its latest move to exit the flex warehouse business as it focuses on the Hudson waterfront in New Jersey.
The Jersey City-based company announced last week that it had sold the Elmsford Distribution Center, a 386,000-square-foot complex at 1-6 Warehouse Lane in Greenburgh. Realterm Logistics acquired the property for $70.25 million.
HFF senior managing directors Jose Cruz and Andrew Scandalios and directors Jordan Avanzato and Marc Duval represented Mack-Cali.
“The sale of Elmsford Distribution Center serves as a significant milestone in our plan to strategically consolidate the Mack-Cali portfolio,” said Michael J. DeMarco, Mack-Cali’s CEO. “While we expect the park’s new owner will experience leasing success in an industrial market that has seen strong rent growth in recent years, the disposition enables us to pay down debt levels from investments we made in creating our multifamily platform.”
Elmsford Distribution center is 98.3 percent leased to tenants including UPS, Nestle Waters North America, XPO Logistics, Pepperidge Farms and Barrie House Coffee Co., HFF said in a separate news release.
“This industrial park’s superb location and high-quality tenants helped drive interest from both institutional and private investors,” Cruz said. “There is future upside for the new owner especially given the lack of future industrial sites available for development in Westchester.”
The deal comes more than a year after Mack-Cali sold a 13-building flex and industrial park in Totowa and a 1.2 million-square-foot office and flex portfolio in Moorestown. The real estate investment trust in recent years has centralized its portfolio around the Hudson waterfront and top suburban submarkets in New Jersey, where it has made new investments in its office and multifamily portfolio.
