Mack-Cali announces JV plan for 92,000 s/f NJ office tower.

Mack-Cali Realty Corporation has entered into a joint venture agreement with The PRC Group to develop a 92,878 s/f class A office building in Red Bank, NJ.

The entire building has been preleased to Hovnanian Enterprises, Inc. on a triple net basis for 10 years.

The building will be part of a two-building complex, known as Red Bank Corporate Plaza, to be developed by Mack-Cali. Expected to be completed by the third quarter of 2007, the building includes 88,000 s/f of office space, 4,878 s/f of retail space, and a four-story parking garage. The second building in the complex, a two-story, 18,560 s/f class A office building, will be developed at a later date.

The property will be developed on a 3.4-acre land site located at 141 West Front Street in downtown Red Bank contributed to the joint venture by The PRC Group. Mack-Cali will serve as the leasing agent and co-management agent for the complex. No broker was involved in the Hovnanian transaction.

Mitchell E. Hersh, president and chief executive officer of Mack-Cali, stated, "This build-to-suit project demonstrates Mack-Cali's commitment to strategic, controlled development, as we expand our presence into the vibrant Red Bank submarket and further build on our holdings in Monmouth County."

He added, "We look forward to partnering with The PRC Group on this exciting venture, and to enhancing our relationship with Hovnanian Enterprises, which is both a Mack-Cali tenant and a potential co-developer with us on a transit village project."

Joel S. Brudner, executive vice president and chief financial officer of The PRC Group, commented, "With growing demand for class A office space in downtown Red Bank, this is an excellent opportunity to combine our resources with Mack-Cali to develop this premier office property." He added, "Besides its excellent downtown location, Red Bank Corporate Plaza will be one of just a handful of downtown properties offering suburban-type parking ratios."