Veris Residential to be Taken Private by Affinius-Led Group

Nearly five years after a name change, Veris Residential is undergoing an even bigger transformation.

The real estate investment trust known until late 2021 as Mack-Cali Realty announced Monday it has agreed to be taken private by an investor consortium led by Affinius Capital in partnership with Vista Hill Partners. The $3.4 billion all-cash deal slated to close in the second quarter pending shareholder approval follows a recent shift by the Jersey City, N.J-based real estate investment trust away from its longtime focus on suburban office assets to multifamily investments.

“Over the past five years, we have undertaken meaningful steps to pivot away from office, simplifying and focusing the business, strengthening our balance sheet and enhancing our operational platform,” Mahbod Nia, CEO of Veris, said in a statement. “Today’s announcement marks the culmination of our strategic transformation into a top-performing pure-play multifamily REIT.”

Nia was named CEO of then Mack-Cali Realty in March 2021 after leading NorthStar Realty Europe Corporation for four years. He replaced MaryAnne Gilmartin, founder and CEO of MAG Partners, after she was appointed to the role on an interim basis in summer 2020 following a proxy fight.

Under terms of the merger agreement, Affinius and Vista Hill agreed to finance the transaction with a combination of debt and equity that includes a $2.08 billion senior secured bridge loan facility. 

Affinius and Vista Hill did not immediately return requests for comment.

Veris was founded in 1949, and turned public in 1994 when it was called Cali Realty Corporation. It became known as Mack-Cali after a $1.2 billion merger in 1997 with Patriot American Office Group and the Mack Company.

Andrew Coen can be reached at acoen@commercialobserver.com.