Veris Residential Sheds $766M Worth of Office Assets in Push to Become Pure Play Multifamily REIT

Veris Residential has entered into an agreement to sell Harborside 1, 2, and 3 for an aggregate price of $420 million and completed its sale of 101 Hudson Street for $346 million.

The sale of 101 Hudson Street is one of the largest single-asset office sales in New Jersey history, says Cushman & Wakefield’s Andy Merin, who helped broker the deal. It “is a historic transaction, made even more significant due to the challenging investment sales environment, with deals of this size and caliber rarely closing in any markets across the country right now.”

Veris has been steadily shedding its office assets since the beginning of 2021 as part of its push to become a pure play multifamily company. “Looking ahead, the sizable proceeds anticipated from these transactions provide the company with meaningful liquidity and optionality as we enter the next phase of our transformation,” says CEO Mahbod Nia.

The company has closed on over $1.4 billion of non-core assets, repaid over $1.2 billion of debt, and added approximately 1,900 units to its residential portfolio.

The company expects to receive approximately $350 million and approximately $90 million of net proceeds from the sales of Harborside 1/2/3 and 101 Hudson Street, respectively.

Cushman & Wakefield’s Merin, Adam Spies, David Bernhaut, Gary Gabriel, Kevin Donner, Frank DiTommaso, Ed Duenas and Ben Lushing served as sole arranger of the 101 Hudson Street transaction.

Cushman & Wakefield’s Merin, Spies, Bernhaut, Gabriel, DiTommaso and Max Helfman, along with CBRE, co-arranged the Harborside 1/2/3 transaction.