In August 1997, Cali Realty Corporation announced its plans to merge with two private real estate concerns, New Jersey-based Mack Company and Dallas-based Patriot American Office Group.
The transaction added 54 office properties totaling approximately 9.2 million square feet to Caliís portfolio, for a combined portfolio of 186 properties totaling 21.5 million square feet of office, office/flex and industrial/warehouse space, located in 10 states. The $1.2 billion transaction closed in December, 1997. The Company operates under the new name Mack-Cali Realty Corporation.
Many New Jersey tenants are familiar with Mackís 5.9 million square-foot portfolio of class A office buildings throughout the region. Mack properties are known for their excellent construction quality, architectural aesthetics, and highway access, and are located in top New Jersey submarkets such as Paramus, Short Hills, Morris Township, and other towns.
John J. Cali (left) and William Mack. Their handshake, at Cali's shareholders meeting to bless the marriage, represents the $1.2 billion merger of two entrepreneurial spirits.
Patriot American Office Group, with top-quality properties located primarily in Texas and Arizona, also contributed its 3.4 million square-foot office portfolio and related operations to Mack-Cali.
"Not only does this merger represent a historic opportunity for Cali and its shareholders," said Brant Cali, who served as Executive Vice President for Mack-Cali. "It will also provide our tenants with an expanded choice of space in some of the best buildings and best markets in the country," he continued.
Headquarters for Mack-Cali remained in Caliís offices in Cranford, New Jersey. Thomas A. Rizk, Caliís President and Chief Executive Officer, continued to serve as Chief Executive Officer and John J. Cali continued to serve as Chairman of the Board. William Mack, Senior Managing Partner of The Mack Company, served as a Director and Chairman of the Executive Committee; and Mitchell Hersh, Partner and Chief Operating Officer of The Mack Company, served as President and Chief Operating Officer.
"Weíre very excited about this transaction, and especially look forward to working with Bill Mack and Mitch Hersh, two of the finest minds in the real estate business," Thomas A. Rizk, Cali President and Chief Executive Officer, commented. "Weíre confident that this merger will enhance our growth opportunities as well as enable us to continue to provide the best properties and services for our tenants," he added.
Real Estate Forum
MACK-CALI Anatomy of a Merger - Critics wondered how Cali Realty could sustain its three-year feverish growth rate. The firm's $1.2-billion merger with the Mack Co. answered their questions. The merger of Cali Realty Corp. and the Mack Co. in December her created a real estate investment trust with extraordinary financial clout and an immediate presence in several growing suburban office markets. But the marriage has done much more. The combined firms today stand on the threshold of major new market inroads. Read more ...