End of an era: Veris exits office with sale of Harborside 5

Veris Residential’s name has never been more fitting.

Earlier this week, the firm announced it is on the verge of selling Harborside 5, a nearly 1 million-square-foot, 34-story tower in Jersey City, for $85 million.

The deal, which was signed in January, was noted as part of its fourth-quarter and full-year 2023 earnings report.

No buyer was noted, but Real Estate New Jersey reported it was being purchased by 601W Cos. LLC, the New York-based firm that last year acquired Harborside 1, 2 and 3. That $420 million deal showed Veris’ transition to a pure-play multifamily operator was nearly complete. The sale of Harborside 5 made it a done deal.

Veris CEO Mahbod Nia said the company’s transition — which began under former CEO Mike DeMarco and picked up when the company changed its name from Mack-Cali Realty Corp. in 2021 — was complete.

“Over the past three years, we have successfully transformed Veris Residential from a complex company to a pure-play multifamily (real estate investment trust) underpinned by a high-quality portfolio of Class A properties and a vertically integrated, best-in-class operating platform,” he said.

“While we have built a strong foundation to date, the potential for continued value creation and relative outperformance as we mature as a multifamily company is tremendous. We look forward to this next phase, during which we will work to further optimize our operations, capital and balance sheet to the benefit of our stakeholders.”

CBRE and Cushman & Wakefield marketed Harborside 5 on Veris’ behalf.