Mack-Cali Acquires Interest in Roseland Partners

Mack-Cali expands its multifamily business with the acquisition of an interest in Roseland Partners; HFF arranges $34 million for a suburban Philadelphia community; and Johnson Capital arranges a $2.05 million loan for unsold units in a former condominium building.

Edison, N.J.—Mack-Cali Realty Corp., a fully integrated REIT with large office holdings in the North East, has signed a definitive agreement to purchase the real estate development and management business of Roseland Partners and Roseland’s interests in six communities totaling 1,769 apartments, additional commercial properties and 13 in-process developments that include nine multifamily properties totaling 2,149 apartments. Locations of these assets extend from New Jersey to Massachusetts, with the majority of properties located in New Jersey.

The business and real property interests will be acquired for an aggregate consideration of up to $134.6 million. The transaction will be financed through Mack-Cali’s $600 million unsecured revolving credit facility. The transaction should close early in the fourth quarter of 2012.

“The acquisition of Roseland is a fundamental step in a strategic diversification for Mack-Cali wherein multifamily residential will be a key component of our growth strategy,” says Mitchell Hersh, president and chief executive officer of Mack-Cali Realty Corp. “Beginning with our previously announced Jersey City multifamily residential development at Harborside Financial Center, Mack-Cali will become a significant participant in the multifamily residential sector in supply constrained markets which overlay our class-A office and office/flex portfolio.”

HFF arranges $34M for newly completed Philly-area asset 

Station at Bucks County

Warminster, Pa.—Holliday Fenoglio Fowler has arranged $34 million in financing for The Station at Bucks County, a newly completed, 233-unit luxury community located in Warminster, Pa. The firm worked on behalf of the borrower, J.G. Petrucci Company Inc., to secure the 10-year, fixed-rate loan through Webster Bank. HFF had previously arranged the $32 million construction loan through the same institution.

The asset is located about 14 miles north of city center Philadelphia and was completed in 2012. The Station at Bucks County features 19 buildings with one- and two-bedroom units averaging 932 square feet each. Amenities will include a clubhouse, fitness center and pool.

Johnson Capital arranges $2.05M loan for unsold units in condo

Long Island City, N.Y.– Johnson Capital announces that Daniel Lisser, managing director in the firm’s New York City office, has arranged $2,050,000 in financing for the three remaining residential units and the three commercial units at the Ten63 Condominium in the Long Island City neighborhood of the borough of Queens.

Located at 1063 Jackson Avenue, the eight-story condominium building was developed in 2009 by two locally based development groups. It contains 41 residential units on floors two through eight with two retail units on the ground floor. Three of the residential units, as well as the two retail suites, remain unsold. The developers retained the last three residential units, which includes two penthouses.  All of the retail units and residential units are leased.

The property has an excellent location in the booming Long Island City residential market with easy access to all parts of New York City and Long Island either by car or public transportation.

The debt was provided by a local credit union with a very attractive fixed interest rate for a term of five years. A key feature of the loan was the ability to prepay the loan at any time without a prepayment penalty.

Commenting on the debt placement, Lisser says, “Our focus on finding the right finance solution for our client led us to examine many capital scenarios.  In the end, we ended up with a lender that had a great combination of proceeds, competitive interest rate and prepayment flexibility.”