Envue, Autograph Collection at 550 Avenue at Port Imperial in Weehawken — Courtesy: JLL
By Joshua Burd
Veris Residential Inc. has completed its exit from the hotel business after selling two Weehawken properties for a combined $97 million, the company announced this week.
The real estate investment trust, which is based in Jersey City, said it closed on the sale of the Residence Inn at Port Imperial and Envue, Autograph Collection, on Feb. 10. Blue Sky Hospitality Solutions, a subsidiary of Navika Capital Group, purchased the adjoining properties with combined 373 keys, which opened around 2019 across from the NY Waterway ferry terminal, along Port Imperial Boulevard.
JLL’s Jeff Davis, KC Patel and Jose Cruz represented the seller.
The deal by the former Mack-Cali Realty Corp. follows a previously announced sale of the Hyatt Regency Jersey City, for $117 million, to Taconic Capital Advisors and HEI Hotels & Resorts. As Veris CEO Mahbod Nia noted this week, the company in 2022 closed on more than $800 million in sales as it continues to shed noncore assets outside the multifamily sector.
“An additional $437 million of office properties are under binding contract, the proceeds from which upon closing are expected to provide the company with increased liquidity and valuable optionality in the year ahead,” Nia said during the company’s fourth-quarter earnings call, according to a transcript. “Furthermore, with our exit from the hotel segment complete, we’ll be only two office properties away from becoming a pure-play multifamily REIT once these transactions close. These remaining non-strategic properties are unlevered and, as such, are expected to release significant equity upon their sale.”
Recent announcements by Veris have largely focused on its luxury multifamily portfolio, as it ramps up its pivot from the office sector after rebranding in late 2021. The company on Wednesday said it has stabilized Haus25, a new 750-unit luxury apartment in downtown Jersey City, after launching leasing in April 2022.
Demand “continued to outpace expectations” over the course of 10 months, the REIT said, allowing the property to be 95.47 percent leased as of Feb. 22.
“The rapid stabilization of Haus25 speaks to our commitment to building innovative spaces that align with the needs of our residents, employees and the communities we serve while generating value for our shareholders,” Nia said. “Achieving this milestone well before anticipated, is a testament to Veris Residential’s experienced team and investment in environmentally friendly design features and community-centric, responsible, and holistic living concepts that meet the lifestyle preferences of residents.”
Veris completes sale of Hyatt Regency Jersey City to Taconic, HEI