Affinius Capital acquires Veris Residential

Affinius Capital, leading an investor consortium, has signed a definitive merger agreement to acquire Veris Residential Inc. for $3.4 billion. The transaction sees Veris, a multifamily real estate investment trust based in Jersey City, taken private. Veris' transformation from an office-centric portfolio, initiated in 2020, is crystallized by this acquisition. The firm's portfolio encompasses over 6,500 units in the Northeast and includes $35 million in land holdings.

Under the deal terms, the consortium, which includes Vista Hill Partners, will pay $19 per share in cash for Veris' common stock, implying a 23.2% premium over Veris' closing share price on February 4, when it stood at $15.42. The transaction values Veris at an enterprise value of $3.4 billion. Funding for this purchase is being secured through a mix of equity and debt, including a $2.1 billion bridge loan. The acquisition prompts Veris' delisting from the New York Stock Exchange.

Veris CEO Mahbod Nia underscored the merger as the conclusion of a substantial transformation for the company, dating back to its rebranding from Mack-Cali Realty Corp. in 2021. Over the past five years, Veris pivoted to a pure-play multifamily focus, reducing non-essential assets, which included $542 million in sales, and enhancing operational efficiencies. Tammy Jones, chair of Veris’ board, affirmed the decision, highlighting the compelling and certain value offered to shareholders through this transaction.

For Affinius Capital, the acquisition complements its portfolio, which holds approximately $61 billion in assets, including significant multifamily investments. This move solidifies Affinius' strategy of expanding its presence in high-demand areas such as the Tri-State area, Boston, and Washington, D.C. The consolidation with Veris aligns with broader real estate trends as investors increasingly favor multifamily properties in urban centers over traditional office spaces.

Approval from Veris shareholders and the meeting of customary closing conditions are pending, with the transaction expected to complete in the second quarter. Veris’ stakeholder Bow Street LLC, holding 5.6% of Veris' shares, supports the deal. Regulatory scrutiny remains a procedural step, though no major hurdles are anticipated given the alignment with existing strategic directions.