When Mack-Cali Realty Corp. announced it rebranded as Veris Residential the name change came along with a shift in focus as the company transitioned to a pure-play multifamily REIT. At the end of the second quarter of this year it’s closer to that goal, announcing the impending sales of two additional non-core assets.
Veris released its Q2 results Aug. 3, in which it highlighted binding contracts totaling $132.25 million for the dispositions of The Hyatt Hotel in Jersey City and 23 Main St. in Holmdel, the company’s last suburban office property.
According to the company, the sales are expected to generate $19.6 million in net proceeds for Veris.
The completed $130 million acquisition of The James in Park Ridge – a 240-unit community named for the city’s hometown hero James Gandolfini – was also highlighted in relation to Veris’ transition.
Haus25 launched leasing in Jersey City in the spring. As of the end of July, the property was 66% leased with 494 leases signed. Take a look.
According to a statement from CEO Mahbod Nia, the company’s multifamily portfolio now represents 83% of net operating income on a pro forma basis; at the end of the first quarter of 2021 that figure was 39%. Since then, Veris recorded 30% growth in the number of units added (approximately 1,900) to its portfolio, Nia added.
“Our multifamily portfolio posted another quarter of sector-leading same store rental and NOI growth, reflecting the significant steps we have taken over the past 18 months to reposition the portfolio and enhance our operational platform,” Nia said. “We also saw continued leasing velocity at Haus25, which is now 66% leased and almost 50% occupied.”
In Q2 the company also completed the sale of two land parcels, one in Jersey City and the other in Weehawken, for a combined price of $100 million. Two additional parcels are under binding contract in Hudson County for total sales price of $25.5 million.
As of June 30, the company’s 6,691-unit operating multifamily portfolio and Same Store 5,825-unit operating multifamily portfolio were 97.1% and 96.8% occupied, respectively. Same Store NOI for the operating multifamily portfolio increased year-over-year and quarter-over-quarter by 28.0% and 8.2%, respectively, reflecting higher occupancy, lower concessions and increasing market rents, according to Veris.
In its consolidated office portfolio, which is comprised of 4.3 million rentable square feet across six operations properties, Veris leased 24,200 square feet during Q2.
The also company released its 2021 ESG report during the second quarter, and said it is on track to meet its target of reducing its Scope 1 and 2 emissions by 50% by 2030.