Veris Seals $340M Refi for Jersey City Luxury Multifamily Property
By Cathy Cunningham August 18, 2023 12:48 pm
reprints
When it comes to scoring mega loans in a tough financing environment — and on a summer Friday, no less — Jersey City is in the “haus.”
Veris Residential just closed a $340 million Freddie Mac refinance for Haus25, its luxury waterfront rental property in Jersey City, N.J., according to sources with knowledge of the deal. CBRE (CBRE) originated the five-year, fixed-rate agency loan through its direct lending arm.
CBRE’s James Millon, Tom Traynor, Adam Spengler and Michael Sherman negotiated the financing, which takes out the property’s construction loan and also repatriates equity to Veris, sources said.
Haus25, at 25 Columbus Drive, began leasing in April 2022. The 56-story building features New York City skyline views and an amenity package that includes 31,000 square feet of outdoor space, a pool, a fitness center and a sky terrace.
Veris — formerly Mack-Cali Realty Corp. — has a long history in Jersey City, but has been gradually transitioning its portfolio to residential assets only, offloading its office holdings in the process.
In April, the real estate investment trust (REIT) made headlines when it sold three of its Jersey City office assets — at 150, 200 and 210 Hudson Street — to 601W Companies for $420 millon, marking a tidy profit for Veris, as well as a significant office trade at a time when the word “office” was akin to cursing. At the time, the sale of the buildings, which together span 1.9 million-square-feet, marked the largest office sale of the year.
More recently, Veris sold Harborside 4, a waterfront development site, to Related Companies. The neighborhood is apparently the place for multifamily activity as Related acquired the site for its first rental property in both Jersey City and New Jersey.
Indeed, one source simply referred to the Jersey City rental market as “white hot” today.
Haus25 was the first residential building delivered by Veris after the REIT’s rebranding in December 2020. Designed by Elkus Manfredi Architects, the LEED-certified building follows Veris’ environmentally conscious modus operandus, and includes plenty of green touches, such as hydro panels and electric vehicle charging stations.
Veris Residential and CBRE officials declined to comment.
Cathy Cunningham can be reached at ccunningham@commercialobserver.com.
