Veris Residential completes $75 million sale of Harborside 8/9 land parcel to Panepinto Properties

Jersey City, NJ Veris Residential, Inc., a multifamily REIT, sold its 4.2-acre Harborside 8/9 land parcel for $75 million.

Net proceeds are estimated to be $69 million, which the company intends to use to further reduce debt, improving Net Debt-to-EBITDA (Normalized) to 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 $0.04 per share of Core FFO on a run-rate basis. Following this sale, the company’s remaining land bank is valued at $35 million, with parcels primarily located in Massachusetts.

Mahbod Nia, chief executive officer, said, “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. The proceeds from this transaction will be used to repay debt, resulting in $0.04 per share of earnings accretion on a run rate basis and further delevering our company to 9.0x, a 53% reduction in Net Debt-to-EBITDA (Normalized) since 2021.

“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 delever to below 8.0x by year-end 2026.”

Located at 3 Second St. and 242 Hudson St., the Harborside 8/9 land parcel is a surface parking lot zoned for mixed-use development. Harborside 8 is approved for 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.