Mack-Cali Realty Corp. (CLI), a fully integrated real estate investment trust (REIT), has signed a new 19-year lease agreement with Continental Casualty Company – the seventh largest commercial insurer in the U.S., for an undisclosed amount. The lessee is the principal subsidiary of CNA Financial Corporation (CNA), the 13th largest property and casualty company in the U.S. with a diverse product portfolio that includes standard commercial lines, specialty lines, surety, marine and other property and casualty coverage.
Mack-Cali has leased 81,296 square feet of space at its 125 Broad Street property in downtown Manhattan. This marks a solid back-to-back lease at the Manhattan building, as the company had recently leased 56,106 square feet of space to General Reinsurance Corporation.
The leased property is a 40-story Class A building strategically located in the heart of the Downtown Financial District of Manhattan – one of the premier business, dining, entertainment and shopping destinations of the region. In addition, the property also offers easy access to various transportation facilities such as the bus, subway, ferry, and helicopter services. Consequently, the office building provides an unmatched business opportunity for the lessee.
Mack-Cali is primarily engaged in owning, leasing, managing and developing Class A office and industrial/flex properties. The company focuses on high-barrier markets mostly in the suburban areas in the northeast and mid-Atlantic regions in the U.S., and derives most of its annualized base rents from New Jersey.
With debt-free ownership of the bulk of its portfolio, Mack-Cali offers a faster and more streamlined leasing process. In addition, the company is structured as a vertically integrated company, providing a full range of leasing, property management, construction, space planning and architectural services under a single platform.
We maintain our ‘Neutral’ rating on Mack-Cali, which presently has a Zacks #4 Rank, translating into a short-term ‘Sell’ recommendation and indicates that the stock is expected to perform well below the overall U.S. equity market for the next 1–3 months.
Be the first to comment