Veris Residential, Inc., a Jersey City-based, Class A multifamily REIT, announced that it has sold its 4.2-acre Harborside 8/9 land parcel in Jersey City for $75 million.
Net proceeds are estimated to be approximately $69 million, which the company intends to use to further reduce debt, improving Net Debt-to-EBITDA (Normalized) to approximately 9.0x from 10.0x in the third quarter and 11.7x at year-end 2024.
The transaction is also expected to be accretive by approximately $0.04 per share of Core FFO on a run-rate basis. Following this sale, the company’s remaining land bank is valued at approximately $35 million, with parcels primarily located in Massachusetts.
“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,” said Mahbod Nia, chief executive officer.
“With $542 million of non-strategic asset sales year to date, we have exceeded our original target of $300 to $500 million in asset sales and achieved our year-end 2026 Net Debt-to-EBITDA (Normalized) target of 9.0x a full year ahead of schedule.
“As we continue executing our disposition strategy, we have raised our sales target to $650 million and believe that we are well-positioned to potentially deliver to below 8.0x by year-end 2026.”
Located at 3 Second Street and 242 Hudson Street, the Harborside 8/9 land parcel is currently a large surface parking lot zoned for mixed-use development.
Harborside 8 is approved for the development of a 68-story tower with 680 residential units. Harborside 9 is approved for development of a 57-story tower with 579 units, including a 15% affordable housing component.
Cushman & Wakefield represented the company in the sale to Panepinto Properties.
