Related Snaps Up Jersey City Land for $58M With Plans for NJ Multifamily Debut
By Cathy Cunningham July 27, 2023 11:33 am
reprints
Related Companies is the proud new owner of a significant land parcel in Jersey City, N.J., and the developer plans to build its first multifamily building in the state there, Commercial Observer has learned.
Related paid $58 million for the Hudson River waterfront site, also known as Harborside 4, sources said. The seller was Veris Residential.
In 2016, Veris — then Mack-Cali Realty Corporation — announced initial plans to build a 1.2 million-square-foot office tower at the site in partnership with SJP Properties. Veris had owned the former parking lot since 1996, when the company acquired the Harborside campus from AT&T.
Sources familiar with Related’s purchase said the firm has different plans for the Harborside 4 site, and will build a 800,000-square-foot luxury multifamily building instead.
The development will be Related’s first rental building in Jersey City and, in fact, New Jersey as a whole, adding to its existing multifamily portfolio in New York, Boston, Chicago and Los Angeles.
Newmark (NMRK)’s Adam Spies and Doug Harmon led the deal, representing both the buyer and seller, along with Cushman & Wakefield (CWK)’s Andy Merin, David Bernhaut and Gary Gabriel, and CBRE (CBRE)’s Roland Merchant.
Veris — a real estate investment trust (REIT) — held its second-quarter earnings call today, and mentioned the sale but not any specifics, keeping the buyer under wraps. The REIT also mentioned it was under contract to sell the nearby Harborside 6 — a 245,364-square-foot office building — for $188 million, but the building’s buyer couldn’t be immediately identified.
The Harborside 4 sale follows the sale of Harborside 1, 2 and 3 in April. 601W Companies snapped up the office buildings for $420 million — with Veris profiting nicely from the sale — Commercial Observer reported at the time.
Related and Veris Residential declined to comment.
Cathy Cunningham can be reached at ccunningham@commercialobserver.com.
