Mack-Cali Realty Corp. is set to acquire two Boston-area rental properties currently managed by its Roseland Property Co. subsidiary, which it formed last fall when it acquired the multifamily builder.
The Edison-based real estate investment trust announced today that it had acquired one of the assets, a 310-unit rental property, for $61.3 million and has agreed to purchase a separate 412-unit asset for $88.7 million. The properties, Alterra at Overlook Ridge IA and IB, are being sold by a joint venture including Prudential Insurance Co. of America.
Roseland developed Alterra IA in 2004 and Alterra IB in 2008 for the venture and has since managed the properties, Mack-Cali said in a news release. The luxury units are part of a master-planned community in Revere and Malden, Mass., five miles north of downtown Boston.
Mitchell E. Hersh, Mack-Cali’s president and CEO, said the move “perfectly complements” its recent acquisition of Roseland’s development and management businesses, along with its “imminent development interests” at Overlook Ridge. Roseland also developed and manages an adjacent property and is building a 371-unit project in a joint venture with UBS, the news release.
Mack-Cali, a longtime office landlord giant, made a splash in the booming multifamily sector last fall when it acquired Roseland. Principals of the multifamily builder, based in the Short Hills section of Millburn, have stayed on as co-presidents of a new Mack-Cali subsidiary called Roseland Management Services LP.
Hersh later said the company would move quickly on Roseland development projects around the region while acquiring multifamily properties originally built and managed the Millburn-based firm. In addition to its 32 million-square-foot office portfolio, Mack-Cali said it now owns or has interests in seven multifamily rental properties totaling more than 2,000 units.
The transaction involving Alterra at Overlook Ridge IB is expected to close in early April “when the loan that currently encumbers to property opens for prepayment,” the news release said.