Veris Residential said to weigh options for $450M worth of Jersey City apartments
Veris Residential (NYSE:VRE) is considering options for its Jersey City apartments, including potential sale or refinancing. The company has engaged Newmark Group to market the Jersey City Urby complex, which has 762 units and a 97% occupancy rate. This move comes as commercial real estate investors are eager to invest amid the Federal Reserve's easing cycle. Analysts suggest that less restrictive monetary policy could support a recovery in commercial real estate, while Deutsche Bank and JPMorgan Chase are also exploring financing options in the area.
Veris Residential (NYSE:VRE) is exploring options for its roughly $450M worth of apartments near Jersey City's waterfront, according to a Friday media report, including a potential sale or refinancing.
The REIT enlisted a team of brokers from Newmark Group (NMRK) to handle the marketing of Jersey City Urby, the apartment complex located at 200 Greene Street, Bloomberg reported, citing people familiar with the matter.
Developed in 2017, the property comprises 762 units with a 97% occupancy rate.
The news comes as investors and lenders in commercial real estate are becoming increasingly eager to deploy their capital, as the Federal Reserve embarks on its first easing cycle in more than four years.
Wells Fargo analyst Charlie Dougherty has said that "less restrictive monetary policy lays the groundwork for a commercial real estate recovery." Bloomberg had reported on Aug. 1 that Deutsche Bank (DB) was attempting to unload up to $1B in U.S. commercial real estate loans off its balance sheet, as elevated borrowing costs have weighed on profits in the German lender's property portfolio.
Meanwhile, Fisher and JPMorgan Chase's (JPM) asset manager, which also owns residential property in Jersey City, are seeking some $370M in financing for what's called the Vantage Collection, a person familiar with the matter told Bloomberg. Newmark (NMRK) is advising on the sale.