Edison, N.J.-based Mack-Cali Realty Corp. has bought two apartment complexes on the Malden-Revere border, totaling 722 units, for $150 million.
The properties are part of the master planned community of Overlook Ridge, near Rte 1. Alterra at Overlook Ridge IA is 310 units and was acquired for $61.3 million. Alterra at Overlook Ridge IB is 412 units and will be acquired for $88.7 million; that transaction is expected to close in April, when a loan that currently encumbers the property is eligible to be prepaid.
The properties are 97.2 percent leased. The properties are being acquired from a Prudential Insurance Co. of America joint venture.
Mack-Cali had recently acquired developer Roseland, which had built Alterra IA in 2004 and Alterra IB in 2008, and has managed the properties since completion.
The properties offer heated outdoor pools, fitness centers, lounges with billiards, business centers, cinema screening rooms, and direct access parking garages.
"The acquisition of Alterra perfectly complements our recent acquisition 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 percent,"Mitchell E. Hersh, president and chief executive officer of Mack-Cali, said in a statement.
According to Marshall B. Tycher, co-president of Roseland, the firm plans to commence interior cosmetic modernization of the property in order to command higher market rents.
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.
Editor’s note: This article original misattributed the headquarters of Mack-Calif. They are based in Edison, N.J., not California. It has been corrected.
