The Real Deal New York

Rockpoint pays $300M for stake in Mack-Cali subsidiary

The firm gains a 17 percent interest in the NJ-based developer
March 08, 2017 03:40PM

From left: Rockpoint’s Bill Walton, Roseland’s Marshall Tycher and Mack-Cali’s Mitch Rudin

Rockpoint Group bought a $300 million stake in Roseland Residential Trust, a subsidiary of New Jersey-based developer Mack-Cali Realty Corporation.

The purchase gives Rockpoint a 17 percent interest in the firm, Real Estate Weekly reported. Mack-Cali bought Roseland for $134.6 million in 2012, and will retain a 83 percent share. Rockpoint’s $300 million will be injected over a two-year period, according to the publication,
and half of the total is due at closing.

The sale puts Roseland’s equity value at $1.2 billion, and gives Mack-Cali the option to invest another $200 million into the subsidiary.

Roseland’s Manhattan holdings include Echelon Chelsea at 37 West 21st Street, Riverbank West at 560 West 43rd Street and 2130 Adam Clayton Powell, Jr. Boulevard in Harlem. The subsidiary finished 2016 with 96 percent occupancy in its stabilized residential portfolio.

“This will allow us to complete our 2017 and 2018 starts and therefore de-stress Mack-Cali’s balance sheet going forward,” Michael DeMarco, Mack-Cali’s president and COO said on an earnings call last week, according to Real Estate Weekly.

Last year, Boston-based Rockpoint, led by Keith Gelb and Bill Walton, paid $421.5 million for two Financial District rental towers at 63 and 67 Wall Street.  [REW]Miriam Hall