Veris Residential, Inc. (NYSE: VRE) (the “Company), a forward-thinking, environmentally- and socially-conscious real estate investment trust (REIT) that primarily owns, operates, acquires, and develops Class A multifamily properties, today announced the completion of its $420 million sale of Harborside 1, 2, and 3, Class A office buildings in Jersey City, New Jersey, releasing approximately $360 million of net proceeds.
“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,” said Mahbod Nia, Chief Executive Officer of Veris Residential. “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, Chief Investment Officer 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. (“Rockpoint”) 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.
About Veris Residential, Inc.
Veris Residential, Inc. is a forward-thinking, environmentally- and socially-conscious real estate investment trust (REIT) that primarily owns, operates, acquires, and develops holistically-inspired, Class A multifamily properties that meet the sustainability-conscious lifestyle needs of today’s residents while seeking to positively impact the communities it serves and the planet at large. The company is guided by an experienced management team and Board of Directors and is underpinned by leading corporate governance principles, a best-in-class and sustainable approach to operations, and an inclusive culture based on equality and meritocratic empowerment. For additional information on Veris Residential, Inc. and our properties available for lease, please visit verisresidential.com.
