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Cali Realty Corporation

Constantly
Surpassing All
Expectations

Black's Guide - Fall 1996
Cover Story:

   

Two years since its IPO, Cali Realty surpasses all expectations - Tenants, brokers, investors and analysts are all finding that Cali Realty Corporation is the company to watch in tri-state real estate. From Cali's hands-on property management to its multitude of acquisitions to its impressive stock return, Cali Realty constantly surpasses all expectations.

In just two years since its initial public offering, Cali has expanded across the tri-state area, completing more than $250 million in acquisitions. Caliís original portfolio of 12 office properties, totaling 2.2 million square feet with 230 tenants, has more than doubled to 45 properties totaling 4.6 million square feet with over 430 tenants.

Brokers and other commercial real estate professionals have witnessed Caliís immense portfolio growth through its acquisition of numerous Class A buildings. These professionals know this growth has been fueled as much by Caliís reputation for integrity as by its fiscal liquidity. Whether negotiating tenant leases or property purchases, brokers can rely on Caliís unswerving principles. In recognition of this reputation, industry peers honored Cali earlier this year with the prestigious 1996 Impact Award from the New Jersey chapter of the National Association of Industrial and Office Properties (NAIOP).

   
  

Beautiful 1350 Campus Parkway in Monmouth Shores, NJ is just one of the 23 properties Cali acquired in a triple-portfolio $97.3 million deal in December 1995.

Tenants, meanwhile, are impressed by Caliís attention to detail. The firm continues to earn respect through its responsive tenant service, effective on site building management and topnotch building maintenance, all of which have helped earn Cali a portfolio occupancy rate of 97 percent.

Caliís performance for its investors has also been nothing short of spectacular. Shareholdersí annual return, assuming re-invested dividends, was almost 50% in 1995, which made Cali one of the top performing office REITs in the country. In the first quarter of 1996, funds from operations (FF0) amounted to 51 cents a share. Second quarter results were equally impressive with FF0 at 55 cents per share, up 14% over the same quarter in 1995.

The Cali Impact

Topping off the fourth quarter of 1995, Cali completed a $97.3 million acquisition of three property portfolios consisting of 23 buildings totaling 1.14 million square feet of space -- the largest aggregate real estate transaction in New Jersey that year. In the first eight months of 1996, Cali purchased approximately $50 million in properties and strategically moved into an important adjacent market, suburban Philadelphia.

   

The 260,000 square-foot Rose Tree Corporate Center in Media, PA marks Cali's strategic penetration of the Philadelphia real estate market.

   

Cali Realty has substantially changed the dynamics of real estate transactions in the state, setting the trend for creative deal structures, fast-paced acquisitions and accessibility to capital. For example, real estate closings typically take a minimum of six months, with loan approvals often requiring at least three months. In contrast, Cali Realty Corporation has reduced its completion time, even on deals worth $100 million, to less than two months because of its extraordinary credit and cash reserves, internal resources to perform due diligence quickly and real estate expertise to identify and take advantage of important growth opportunities.

In May 1996, Cali acquired Rose Tree Corporate Center in Media, Pennsylvania -- a transaction that took a mere three weeks to complete. The companyís purchase price for this two-building, 260,000square-foot property was approximately $28 million.

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