An endeavor to transform a large superblock along the Passaic River waterfront in Newark has taken preliminary steps toward the redevelopment of one of the city’s most prominent office buildings.
JLL and CBRE have announced they are working together on behalf of NJ Transit and Horizon Blue Cross Blue Shield of New Jersey to solicit interest in a potential mixed-use development opportunity at 1 and 3 Penn Plaza East. The sites, currently an office complex, would be replaced by a new residential complex of up to 1000 units under the vision.
The project plan would also include a new single-tenant 250,000-square-foot Class A building that would serve as Horizon’s new headquarters in Newark at a site undisclosed thus far. Both the redevelopment and office building component would require approvals from the City of Newark and need to satisfy various other regulatory requirements.
The potential project anticipates utilizing New Jersey Economic Development Authority’s ASPIRE Transformative Project program, a tax-credit incentive designed to close financing gaps for large-scale, mixed-use projects. JLL and CBRE are inviting interested potential developers to register their interest at this link by December 31 to request a copy of a Confidential Information Memorandum.
“Horizon and NJ TRANSIT have been neighbors for 30 years, and it is very gratifying to be part of a coordinated effort that results in both organizations remaining in Newark while advancing the City’s redevelopment aspirations,” says Gil Medina, Executive Vice President of CBRE. “As technology continues to improve how Horizon serves its members, the company’s new headquarters will allow it to operate more efficiently and in a smaller footprint, while offering its employees and guests a modern, collaborative environment in the heart of Newark.”
Both Penn Plaza properties are assumed to be delivered vacant, with the properties spanning about three total acres. The lots are situated directly next to Newark Penn Station and its myriad of transit options.
“This project is the realization of many months of discussion on transforming two older office buildings at a premier waterfront location with unobstructed views of the New York skyline into a vibrant mixed-use development,” says Ron Simoncini, Executive Vice President of JLL. “The ASPIRE program facilitates just this sort of opportunity, and in addition to our gratitude to the amazing collaboration of Horizon and NJ TRANSIT, the Murphy Administration deserves credit for energizing the development community.”
NJ TRANSIT may issue a procurement for the project, which is expected to involve a Request for Proposals and will comply with all applicable laws and regulations. JLL is representing NJ TRANSIT in the transaction, while CBRE is representing Horizon Blue Cross Blue Shield.
