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Cali Realty Corporation

The Making of a
Super-Regional
REIT

Black's Guide - Spring 1997
Cover Story:

   

By aggressively embarking on a calculated strategy of acquiring and developing high-quality properties in promising markets, Cali Realty Corporation has become the premier super-regional office REIT in the Northeast, with properties stretching across four states.

The implementation of this strategy relies on Caliís ability to focus its expansion activities in markets where it is or can become a dominant player and its success in gaining access to the capital markets. This two-pronged approach provides the company with a focused group of acquisition targets and the means to get deals done quickly.

   
   

Cali's acquisition of the 1.9 million square-foot Harborside Financial Center in Jersey City. NJ, was one of the largest commercial real estate transactions in New Jersey's history.

From August 1996 through January 1997, the Company reached several significant milestones. This six month period saw Cali complete $850 million in transactions, raise $545 million in equity capital and establish itself as one of the few super-regional REITs in the country. The $287 million November purchase of the 1.9 million square-foot Harborside Financial Center office complex in jersey City was heralded as one of the largest commercial real estate transactions in New Jersey history. In November the company completed the largest post IPO offering in REIT history, raising $467 million via the sale of 17.5 million shares of common stock. Finally, in January 1997, Caliís $440 million acquisition of Westchester-based Robert Martin Company was considered by many industry experts to be the largest private to public transaction in REIT history.

Overall, 1996 was a year of tremendous accomplishments and explosive growth for Cali Realty Corporation. Caliís property portfolio grew by 82%, and its market capitalization surpassed the $1 billion level. Strategically, Cali expanded into new markets while simultaneously strengthening its presence in its core New Jersey marketplace. In 1996, the Company purchased 15 office properties, totaling almost 3.3 million square feet, for over $450 million. Cali immediately started out 1997 with its biggest transaction to date, when it acquired 65 properties totaling 4.1 million square feet with its Robert Martin transaction.

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