Veris Residential announced Wednesday the completion of its $420 million sale of Harborside 1, 2 and 3 Class A office buildings in Jersey City to Rockpoint Group – a milestone moment that essentially completes the REIT’s transition to a pure-play multifamily company.
With the Harborside 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.
CEO Mahbod Nia put the sale into perspective.
“The closing of this transaction completes over $2 billion of non-strategic asset sales during the past two years,” he said. “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.”
Veris Chief Investment Officer Jeff Turkanis said the efforts are noteworthy.
“The close of this transaction is a testament to the unwavering commitment and determination of the Veris Residential team,” he said. “We have proven our ability to navigate complex dispositions amidst challenging market conditions.”
In connection with closing of the transaction, the company exercised its right to purchase and redeem the preferred units and certain other ownership interests from Rockpoint Group, L.L.C. and its affiliates in Veris Residential Trust.
Exercising the Put/Call right triggers a repayment within thirty 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.
Cushman & Wakefield and CBRE arranged the transaction. Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are acting as financial advisors to Veris Residential on its strategic transformation.
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