What the Capital Markets Don’t Understand

Mack-Cali CEO Mitchell Hersh (whom we snapped yesterday at NYU’s REIT Symposium with RXR CEO Scott Rechler) says the industry misunderstands why his company is restructuring subsidiary Roseland's JVs with insurance company investors. Spolier alert: It's not because Roseland's NJ properties need the capital. When Mack-Cali bought the multifamily developer and operator 19 months ago, Roseland had never retained an interest in its projects, taking fees and promotes (benchmark performance fees) instead. But Mack-Cali wants to co-invest. The reason the insurance companies are agreeing is simple, Mitchell says: They want to keep Roseland's multifamily expertise.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's New York Newsletters
Related Stories

Supertall Assemblage Comes Together At Long-Vacant Midtown Site: The N.Y. Deal Sheet

Suburban D.C. County Weighs Microhousing As Affordability Salve

Fannie Mae, Freddie Mac Rewrite Underwriting Standards For NYC's Rent Freeze

RealPage Antitrust Case Ends With Nearly $360M In Settlements For Renters

ZOM Living Entity Files For Bankruptcy To Fund Fight To Overturn $323M Judgment

Golden Apartment Building Sells For $62M To Chicago Company

Banks Are Manhattan's Latest Hot Retail Tenant

New Student Housing Towers Lease Up Quickly In University City, But Developers Can't Build More

Nord Group's Lawyer Moves To Quit, Says Entities Can't Pay Him

The Geo Group To Reopen 2,329-Bed Immigration Facility In Texas

What's At Stake For CRE In Tuesday's U.S. Midterm

Housing Completions Close To 40,000 As LDA Adds Major Site And CEO Departs