Harborside buildings 5 (foreground) and 6 in Jersey City — Courtesy: CBRE
By Joshua Burd
Veris Residential Inc. is seeking a buyer for two additional pieces of its Harborside campus in Jersey City, following news that it was under contract to sell its three flagship office buildings at the property for $420 million.
According to CBRE, which is marketing the buildings on Veris’ behalf, the latest offering includes the 983,041-square-foot Hudson Street office building known as Harborside 5, which also has a 1,150-space car parking garage. The brokerage team is also marketing Harborside 6, a 245,364-square-foot office building at the corner of Christopher Columbus Drive and Washington Street, with a 1,029-space garage and a new 47,542-square-foot Whole Foods store slated to open next year.
Both are opposite Harborside 1, 2 and 3, which total some 1.9 million square feet and are the longtime centerpiece of Veris Residential’s office portfolio, which it’s now shedding as part of a full pivot to luxury multifamily property. An undisclosed buyer is under contract to buy the complex, the real estate investment trust announced last month, in a deal co-brokered by CBRE and Cushman & Wakefield.
The CBRE team included Jeffrey Dunne, Bill Shanahan, Darcy Stacom, Roland Merchant and Stuart MacKenzie, who are now spearheading the launch of Harborside 5 and 6. They noted that building 5 is anchored by Brown Brothers Harriman, Tradeweb Markets and SunAmerica Asset Management, while Harborside 6 offers potential alternative uses such as life sciences and experiential entertainment or showrooms.
Veris CEO Mahbod Nia discussed the company’s ongoing transition during its third-quarter earnings call last week, responding to an analyst’s question about interested in the Harborside office buildings.
“(We) started to process for Harborside earlier this year, and we had decent interest around the whole portfolio, and then we also had interest around subcomponents of the portfolio,” Nia said. “So, the buyers are fairly varied, but I’d classify them as generally the value-adds, they are looking to sort of repositioning opportunities in the office space. And, so, it is conceivable that potentially one or more of the buyers that we spoke to during our process could be a buyer for 5 and 6.”
Veris Residential to sell flagship Harborside office buildings in Jersey City for $420 million