Cali Realty Corp. said it agreed to...

Cali Realty Corp. said it agreed to buy the office properties holdings of closely held Mack Co. and its Patriot American Office Group affiliate for $1.2 billion, including the assumption of debt. The purchase would about double Cali’s office holdings to 21 million square feet of space and would make it one of the largest owners of such real estate in the U.S. It would also take Cali into new markets in the Southwest. The planned purchase extends a buying spree by Cali and others who are rushing to capitalize on quickly rising rent and occupancy rates, as well as the premiums investors are paying for larger, diversified companies. Cali would pay $476 million in cash, issue $404 million of securities and assume $302 million of debt. Cali would be renamed Mack-Cali Realty Corp. Rochelle Park, N.J.-based Mack owns 17 million square feet of property in the Northeast, plus a few buildings in Arizona and Florida. Cranford, N.J.-based Cali’s shares gained $1.88 to close at $37.63 on the New York Stock Exchange.