Mack makes another move that could bulk up portfolio.

Adding 20 properties to their already extensive New Jersey portfolio with the acquisition of the Gale Company two weeks ago, Mack-Cali seems to be already positioning itself to bulk up in another market in which it has significant holdings, Washington D.C.

Addressing questions brought up by REIT analysts over Mack-Cali's purchase in recent months of 1,804,800 shares of common stock in CarrAmerica Realty Corporation, Mack-Cali's president and CEO Mitchell Hersh issued a statement last week that indicated the REIT's stock purchase may be a Vornado-style bid to be the buyer first in line should CarrAmerica decide to sell some of its assets.

"We would be interested in talking to the company about some of its assets should they become available," Hersh said in the statement.

Vornado similarly purchased significant stakes in Sears and also McDonalds at times when it seemed both companies were considering disposing of some of their retail property holdings--a sell-off that, in both cases, hasn't happened.

In a conversation with REW, Hersh admitted that being a major stockholder in the firm was no assurance that Mack-Cali would be able to acquire some of CarrAmerica's assets, but added that, regardless of the potential real estate opportunities, the REIT has profited impressively from the appreciation of CarrAmerica's stock.

"Being an owner of about 3% of the company, I think we certainly have more of a voice and perhaps would be given greater consideration should they decide to sell," Hersh said. "But I also made the decision to purchase this stock because I saw it as undervalued. So far, we've made about $10 million from appreciation, which isn't bad for an investment we made just a few months ago."

Hersh also revealed that Mack-Cali is currently pondering entry points into the Boston office market.

"I've always seen Boston as a great fit for us," Hersh said. "Right now we're considering possible deals." Long barred from entering Manhattan because of its high prices, MackCali's partnership with Manhattan REIT, SL Green, in ownership of eight of the 20 buildings in the Gale portfolio may eventually present it with opportunities, Hersh indicated.

"It has always been my feeling that the people who you have relationships with are the ones who you are often going to be able to explore business opportunities with," Hersh said.