Veris Residential Closes $420M Harborside Complex Sale in Jersey City
The REIT gets kudos for closing the deal in a challenging capital markets environment.
Multifamily REIT Veris Residential has announced the completion of its $420 million sale of Harborside 1, 2, and 3, Class A office buildings in Jersey City, NJ. Net proceeds are approximately $360 million.
The transaction completes over $2 billion of non-strategic asset sales during the past two years for Veris Residential and marks a milestone in its transition to a pure-play multifamily company, CEO Mahbod Nia said.
With the transaction, Veris Residential’s multifamily assets now account for approximately 98% of the company’s net operating income, up from 39% as of the end of the first quarter of 2021.
“Management deserves credit for closing the transaction during a challenging time for office fundamentals and turbulent capital market conditions,” Green Street said in a report.
Veris Residential also exercised its right to purchase Rockpoint’s preferred equity interest, with the company estimating a redemption value of $480 million for Rockpoint’s outstanding units. If Rockpoint chooses not to defer the redemption, which it could for up to one year, the transaction would close as soon as May, much earlier than anticipated, according to Green Street.