Mack-Cali Realty Corp. has secured $650 million of financing for its plan to buy about $450 million of office properties.
The Cranford, N.J., real estate company this week said it had doubled its unsecured line of credit led by Chase Manhattan Bank and Fleet Bank, to $800 million. The credit facility has a three-year term and will bear interest at the London interbank offered rate plus 110 basis points. It is expected to close in 30 to 60 days.
Mack-Cali also obtained a $150 million, seven-year secured loan from Prudential Insurance Company of America. If it achieves an investment-grade credit rating, Mack-Cali will have the option to convert the loan into senior unsecured debt.
The real estate company will also do a $100 million private placement of common equity with a fund managed by Prudential Real Estate investors.
The company's planned acquisitions include the $170 million purchase of Prudential Business Campus, an 875,000-square-foot, class-A office complex in Parsippany, N.J., and the $52.5 million buy of Morris County Financial Center, a 308,215-square-foot office complex adjoining the Prudential campus.