Veris Residential, Inc. has completed a $420 million sale of Harborside 1, 2, and 3 (“Harborside 1/2/3″). The Class A office buildings are situated at the 25-acre Harborside complex in Jersey City.
Veris is a real estate investment trust (REIT) that primarily owns, operates, acquires, and develops Class A multifamily properties.
According to Mahbod Nia, CEO of Veris Residential, “The sale of Harborside 1/2/3 represents a significant milestone and a critical step in the company’s transition to a pure-play multifamily company. The closing of this transaction completes over $2 billion of non-strategic asset sales during the past two years. As we approach the final stages of our transformation, our focus will be on concluding the few remaining non-strategic asset sales and working with our Board to unlock the substantial value embedded in the company for our shareholders.”
With the Harborside 1/2/3 transaction complete, Veris Residential’s multifamily assets account for approximately 98% of the company’s net operating income, up from 39% as of the end of the first quarter of 2021.
“The close of this transaction is a testament to the unwavering commitment and determination of the Veris Residential team. We have proven our ability to navigate complex dispositions amidst challenging market conditions,” said Jeff Turkanis, CIO of Veris Residential.
In connection with closing of the transaction, the company exercised its right to purchase and redeem the preferred units and certain other ownership interests (“Put/Call”) from Rockpoint Group, L.L.C. and its affiliates in Veris Residential Trust. Exercising the Put/Call right triggers a repayment within 30 days unless Rockpoint exercises its right to defer repayment by up to twelve months, which it must do within ten days. The Company also terminated its revolving credit and term loan agreement.
CBRE brokers who arranged the sale of Harborside 1/2/3 were Jeffrey Dunne, Bill Shanahan and Roland Merchant. Co-brokers at Cushman & Wakefield included Andy Merin, David Bernhaut and Frank DiTommaso. Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are acting as financial advisors to Veris Residential on its strategic transformation.
To access more business news, visit NJB News Now.Related Articles: