Veris Residential Hits Debt Target Early With $75M Jersey City Sale

JERSEY CITY, NJ – December 10, 2025 – In a move that signals both a strategic victory and the dawn of a new chapter for the Jersey City waterfront, Veris Residential, Inc. has completed the $75 million sale of its Harborside 8/9 land parcel. The transaction, which places the 4.2-acre site in the hands of prominent local developer Panepinto Properties, is far more than a simple line item on a balance sheet. It represents the capstone of a multi-year corporate transformation and a critical catalyst for Veris's accelerated deleveraging plan, hitting a key financial target a full year ahead of schedule.

For investors and analysts tracking the REIT sector, this sale is a masterclass in disciplined execution. The story behind this transaction is one of strategic foresight, financial re-engineering, and the calculated shedding of a legacy identity to forge a more focused, resilient future.

A Financial Masterstroke in Deleveraging

The immediate impact of the $75 million sale is a significant strengthening of Veris Residential's financial posture. The company anticipates net proceeds of approximately $69 million, which are earmarked entirely for debt reduction. This single move will dramatically improve a crucial metric for investors: the Net Debt-to-Normalized EBITDA ratio. The ratio is projected to fall from 10.0x in the third quarter to approximately 9.0x, a level Veris had not expected to reach until year-end 2026.

This achievement marks a remarkable turnaround from the 11.7x ratio recorded at the close of 2024. In his official statement, CEO Mahbod Nia highlighted this progress, noting, "The proceeds from this transaction will be used to repay debt, resulting in $0.04 per share of earnings accretion on a run rate basis and further delevering our company to 9.0x, a 53% reduction in Net Debt-to-EBITDA (Normalized) since 2021."

The sale is the latest success in an aggressive asset monetization program that has far outpaced the company's own projections. With $542 million in non-strategic asset sales year-to-date, Veris has blown past its original target range of $300 to $500 million. This outperformance has emboldened management to raise its sights, increasing the full-year sales target to $650 million and setting a new, more ambitious goal of lowering the debt ratio to below 8.0x by the end of 2026. For shareholders, the immediate benefit comes in the form of an expected $0.04 per share accretion to Core Funds From Operations (FFO), demonstrating that the debt reduction is not just a defensive move but a value-creating one.

The Final Step in a Pure-Play Pivot

This land sale is the exclamation point on Veris Residential’s long and deliberate journey away from its past as Mack-Cali Realty Corp., a diversified REIT with significant office holdings. The transaction effectively completes the company’s strategic transformation into a pure-play Class A multifamily REIT with a laser focus on the Northeast. The remaining land bank is now valued at a modest $35 million, primarily located in Massachusetts, underscoring the near-total exit from non-core development activities.

This pivot has been methodical. In April 2023, Veris sold the Harborside 1, 2, and 3 office towers for a hefty $420 million. This was followed by the sale of its final office property, the 1 million-square-foot Harborside 5 tower, for $85 million in early 2024. Each sale was a calculated step to simplify the business, pay down debt, and concentrate capital on its high-performing multifamily portfolio.

The results of this sharpened focus are evident. The company's residential assets, particularly in the robust Jersey City market, are outperforming. During the third quarter of 2025, Veris’s waterfront properties saw new lease net blended rental growth of 6%, a testament to the demand for premium living spaces in the area. By concentrating on a portfolio where the average revenue per home stands at $4,255—a 40% premium to its peers—Veris is positioning itself as a specialist in a lucrative market segment, a far cry from its former identity as a diversified landlord.

A New Vision for the Waterfront

While Veris Residential closes a chapter, a new one begins for the Harborside 8/9 parcel itself. Currently a sprawling surface parking lot at 3 Second Street and 242 Hudson Street, the site is poised for a dramatic transformation. The land comes with approvals for a massive mixed-use development, featuring two soaring residential towers that will permanently alter the Jersey City skyline.

The plans call for a 68-story tower (Harborside 8) with 680 units and a 57-story tower (Harborside 9) with 579 units. The buyer, Panepinto Properties, is a development heavyweight in Jersey City, with a long history of executing large-scale residential and mixed-use projects that have shaped the city's modern character. Panepinto's deep local experience and track record, which includes luxury towers like 50 Columbus, suggest a high likelihood that the ambitious vision for this site will become a reality.

The development of nearly 1,300 new residential units speaks to the unabated demand for housing in this transit-rich city. It reinforces the ongoing shift in Harborside from a primarily 9-to-5 office district into a vibrant, 24/7 residential neighborhood—a trend that Veris itself helped pioneer through its strategic asset sales.

Balancing Growth, Affordability, and Urban Impact

The future development of Harborside 8/9 encapsulates the complex dynamics of modern urban growth. The project's scale promises a significant boost to the local economy and tax base. Critically, the approval for Harborside 9 includes a 15% affordable housing component, a provision that will be closely watched by city officials and housing advocates. In a city grappling with rising housing costs, the inclusion of affordable units within a premier waterfront project represents a meaningful step toward more inclusive development.

However, the addition of over a thousand new households will inevitably raise questions among community stakeholders about the impact on local infrastructure, traffic congestion, and public services. The sheer height of the proposed towers will also factor into conversations about view corridors and the changing physical character of the waterfront. The project's success will hinge not only on Panepinto's development prowess but also on its ability to navigate these community considerations and integrate the massive project into the existing urban fabric. This single transaction, therefore, serves as a microcosm of the broader challenge facing Jersey City: how to foster ambitious growth while preserving livability and ensuring equitable access to the opportunities it creates.

The sale of Harborside 8/9 is a definitive win for Veris Residential's strategy, but its lasting legacy will be measured in the steel and glass that will rise from the parking lot, reshaping a key piece of the metropolitan coastline for decades to come.