LCOR Inc. is among the latest firms to buy a major development site in downtown Jersey City.
By Joshua Burd
LCOR Inc. has secured a nearly two-acre development site in downtown Jersey City, acquiring the parcel from Veris Residential Inc. in a $54 million deal arranged by JLL.
The property, located at 107 Morgan St., is part of the city’s Powerhouse Arts District and is zoned for high-rise residential development. Plans for the site call for 624 apartments, ground-floor retail space and amenities for renters, in a location that’s less than a quarter-mile from the Grove Street PATH station and three blocks from the Hudson waterfront.
JLL’s Jose Cruz and Ryan Robertson represented Veris in the sale.
“LCOR is excited about the acquisition of 107 Morgan,” said Brian Barry, a senior vice president with the firm. “This development represents an incredible opportunity to deliver a waterfront residential community in a dynamic neighborhood within the Powerhouse Arts District.”
Veris Residential announced the deal this week after revealing last summer that it was under contract to sell the 1.73-acre tract, which is currently a parking lot. The closing followed a quarter in which it sold $179 million in what it called non-strategic assets, including its last office building, as the real estate investment trust detailed in its most recent earnings report.
“We had a positive start to the year, implementing and advancing a number of value-enhancing operational, capital recycling and balance-sheet-related initiatives, while continuing to deliver strong financial results,” Veris Residential CEO Mahbod Nia said.
“Despite the challenging credit environment, we were able to secure a $500 million credit facility and term loan from a broad range of lenders, providing us with substantial liquidity, financial flexibility and potential for enhanced earnings, as reflected in our raised guidance. We also unlocked another $145 million of idle equity from nonstrategic asset sales while continuing to generate solid operational performance, as evidenced by our same store year-over-year NOI growth of 14 percent. Looking ahead, we are well positioned to execute on our multipronged optimization strategy as we seek to continue creating value for our shareholders.”
Veris Residential, formerly Mack-Cali Realty Corp., acquired 107 Morgan St. in 2019.
Veris places another Harborside office tower, land site under contract for combined $104 million
