Real estate investment trust Veris Residential, Inc. (VRE) Monday said it has entered into a binding agreement to sell Harborside 1, 2, and 3 for an aggregate price of $420 million, subject to closing adjustments for several ongoing construction projects. The company also completed its sale of 101 Hudson Street for $346 million.
The company said the sales, with its exit of the office sector nearly complete, mark significant milestones on its path to becoming a pure-play multifamily REIT.
Veris Residential anticipates closing the Harborside 1/2/3 sales deal, which was executed on September 22, in the first quarter of 2023. The agreement is subject to closing conditions and other terms and conditions customary for real estate transactions.
Following the close of Harborside 1/2/3 and pro-forma for the stabilization of Haus25, Veris’ multifamily will represent around 98% of its net operating income, up from 39% as of the end of the first quarter of 2021.
The company expects to receive around $350 million and around $90 million of net proceeds from the sales of Harborside 1/2/3 and 101 Hudson Street, respectively.
Mahbod Nia, Chief Executive Officer, said, “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.”
Since the beginning of 2021, the company said it 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.
Cushman & Wakefield and CBRE co-arranged the Harborside 1/2/3 transaction, while Cushman & Wakefield served as sole arranger of the 101 Hudson Street deal.
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