Mack-Cali Realty Corp. has acquired Alterra at Overlook Ridge IA in Metro Boston for $61.3 million. The company has also agreed to acquire Alterra at Overlook Ridge IB for approximately $88.7 million and expects an early April closing when the loan that currently encumbers the property opens for prepayment.
The multi-family properties contain 722 rental units in the master planned community of Overlook Ridge in Revere and Malden and is 97.2% leased. The properties are being acquired from a Prudential Insurance Co. of America joint venture.
Mack-Cali's recently acquired Roseland subsidiary developed Alterra IA in 2004 and Alterra IB in 2008 for the venture, and has managed the properties since completion.
The class A multi-family properties offer residents resort-style amenities, including heated outdoor pools, fitness centers, lounges with billiards, business centers, cinema screening rooms, and direct access parking garages. The Overlook Ridge community is located five miles north of downtown Boston and its many restaurants, shopping, and attractions. It also features superior access to a vast highway network, direct access to MBTA bus service, as well as private shuttle service.
Mitchell Hersh, president and chief executive officer of Mack-Cali, said, "The acquisition of Alterra perfectly complements our recent acquisition of the real estate development and management businesses of Roseland and its imminent development interests at Overlook Ridge. We expect to place mortgage financing on the property that will provide a cash on cash yield in excess of 9%."
Marshall Tycher, co-president of Roseland, said, "We were attracted to this acquisition because these premier assets represent the finest in luxury, location, and amenities, and are consistent with the highest quality properties in the marketplace, as well as the opportunity for a value-add component. With a planned interior cosmetic modernization we are confident we can command today's higher market rents."
Alterra IA, a 310-unit property developed by Roseland, completed construction in 2004. The has amenities including an outdoor heated pool, club room equipped with billiards and flat screen TVs, fitness center, indoor basketball court and children's playroom. The property also includes a conference room for private meetings as well as theater-style cinema screening room. Roseland has managed the asset since its 2004 completion.
Alterra IB, a 412-unit property developed by Roseland, was the second rental phase of Overlook Ridge and completed construction in 2008. Roseland has managed the asset since its 2008 completion.
In addition to managing Alterra, Roseland developed and manages the adjacent Quarrystone and is actively constructing the 371-unit Highlands at Overlook Ridge in joint venture with UBS.
Mack-Cali Realty Corp. is a fully integrated, self-administered, self-managed real estate investment trust (REIT) providing management, leasing, development, construction and other tenant-related services for its class A real estate portfolio. Mack-Cali owns or has interests in 278 properties consisting of 271 office and office/flex properties totaling approximately 31.6 million s/f and seven multi-family rental properties containing over 2,000 residential units, all located in the Northeast. The properties enable the company to provide a full complement of real estate opportunities to its diverse base of commercial and residential tenants.