- Veris Residential Inc. is considering refinancing or selling its $450M Jersey City Urby apartment building, and it is enlisting Newmark brokers to explore its options.
- The property, located near the Jersey City waterfront, boasts 762 units with a high occupancy rate of 97%, reflecting strong rental demand in the area.
- Investors and lenders are showing more interest in residential, after the recent interest rate cut reinvigorated the commercial property market.
According to Bloomberg, Veris Residential Inc. (VRE) is weighing its options for Jersey City Urby, a $450M apartment complex located near the Jersey City waterfront.
The A-Team
The company has hired a team of brokers from Newmark Group Inc. (NMRK), led by Adam Spies and Adam Doneger, to explore a potential sale or refinancing of the 762-unit building, which maintains a strong 97% occupancy rate.
The decision comes amid a changing market environment, as investor interest in well-located residential properties picks up following recent interest rate cuts.
Attractive Conditions
Jersey City has become a popular alternative for those seeking more affordable housing near New York City.
Though rents have shot up in recent years, the median rent for a one-bedroom in Jersey City is still $3,300—far more affordable than Manhattan’s $4,500 average.
Ample Amenities
The Veris property offers several amenities that appeal to renters, such as a pool, gym, yoga studio, dog park, and in-unit washers and dryers. It’s also just an 8-minute walk from a train station with access to NYC.
The building, completed in 2017, also features retail tenants like Glowbar and the Domodomo, enhancing its attractiveness to prospective buyers or investors.
Given its high occupancy and the recent Federal Reserve rate cut—the first in over four years—the property is positioned as an appealing asset in a market showing renewed investor confidence.
Daily Dynamics
The commercial property market is gaining traction, particularly for residential properties in desirable locations.
While older office buildings are being sold at steep discounts, residential properties like Jersey City Urby, situated in constrained supply markets, are seeing improved pricing and investor demand.
This reflects a broader market trend where well-located, high-quality residential assets are experiencing better performance compared to more distressed commercial sectors.
Zooming Out
Veris isn’t alone in considering refinancing opportunities. JPMorgan Chase & Co.’s (JPM) asset management division and Fisher are also in the market for financing their Jersey City residential project, the Vantage Collection.
They are seeking approximately $370M for refinancing the two-tower complex, working with Newmark brokers led by Jordan Roeschlaub. This underscores Jersey City’s ongoing attractiveness as a residential investment destination, particularly as rental demand remains strong.
Why It Matters
The actions taken by Veris Residential and other property owners in Jersey City indicate that investor confidence in well-located residential properties is recovering.
Following recent monetary policy shifts, lenders and investors are showing renewed interest in using their capital, particularly in supply-constrained markets with resilient demand.
This highlights a key shift in the commercial real estate landscape: High-quality residential assets are becoming a safer bet amidst broader market uncertainties.
