Under a new three-year plan, Mack-Cali Realty Corp. is shifting its investment strategy to focus more on multifamily and mixed-use properties along urban waterfronts and in transit-oriented markets. It will scale back its investment in office properties and transfer its Roseland multifamily subsidiary into a separate REIT, Roseland Property Trust. The new REIT will continue to focus on the apartment asset class, including repurposing some of Mack-Cali's office holdings to multifamily use.
Mack-Cali Realty's new leaders are promising shareholders changes including stepped-up sales of underperforming suburban office buildings, and they vow better communication with investors, analysts and the public. "People didn't want to deal with us because it was unpleasant," says Michael DeMarco, the new president.
A Mack-Cali partnership is seeking approval to build a 300-unit, 32-story apartment tower in Philadelphia. Construction is expected to start at the end of the year. The project is part of Mack-Cali's move from suburban offices to apartment and mixed-use development.
Mack-Cali Realty and Keystone Property Group have paid $125 million to acquire a building in Philadelphia that contains 885,000 square feet of office and retail space. The companies are planning to reposition the Curtis Center, which occupies a city block, by converting some of the office space to luxury apartment units and increasing the retail space.