#United States #Jersey City #Veris Residential #Harborside 8/9

Veris Residential's $75 Million Sale of Harborside Land Parcel

Veris Residential, Inc. (NYSE: VRE), a leading Northeast-focused real estate investment trust (REIT), has successfully completed the sale of the Harborside 8/9 land parcel in Jersey City, New Jersey, for a substantial $75 million. This transaction marks a significant step in the company’s strategic plan to enhance its financial structure and reduce debt burden.

Overview of the Sale Details

The Harborside parcel, spanning 4.2 acres, was sold to Panepinto Properties. Following the sale, Veris Residential expects net proceeds of approximately $69 million. These funds are earmarked for debt repayment, which will improve the company’s Net Debt-to-EBITDA (Normalized) ratio from 10.0x in the third quarter to around 9.0x, demonstrating a strategic and proactive approach to financial health.

CEO Mahbod Nia stated, "The sale of the Harborside 8/9 land parcel represents a significant milestone in the continued execution of our strategic plan to monetize non-strategic assets and further strengthen our balance sheet." He emphasized that this sale will not only allow the company to repay debt but also contribute $0.04 per share to Core Funds From Operations (FFO) on a run-rate basis.

Strategic Importance of Asset Sales

This transaction is part of a larger divestment strategy wherein Veris Residential has already sold $542 million worth of non-strategic assets this year, surpassing their original target of $300 to $500 million. The company has set a new sales target of $650 million, intending to continue deleveraging its balance sheet to below 8.0x Net Debt-to-EBITDA by the end of 2026.

Future Development Potential

The Harborside 8/9 site is currently a surface parking lot that has been zoned for mixed-use development, offering exciting prospects for future projects. Harborside 8 has development approval for a 68-story tower with 680 residential units, while Harborside 9 is set for a 57-story tower that will include 579 residential units—15% of which are designated as affordable housing. This development aligns with Veris Residential's commitment to enhancing community living through thoughtfully designed real estate.

Conclusion

Veris Residential’s recent land sale in Jersey City not only enhances its financial ratios but also sets a foundation for future developments in a vibrant locale. The proactive steps taken to monetarily optimize their asset portfolio and the strategic reinvestment into the company’s growth plans reflect a robust commitment to its stakeholders and the communities they operate in. As they continue on this path, Veris Residential showcases their forward-thinking approach in today’s dynamic real estate market, positioning themselves for sustained success.

For more details on Veris Residential and other available properties, visit their official website.