The Personal Injury Attorney Near Me East Newark, NJ, You Can Trust

NJ Transit and Horizon Blue Cross Blue Shield of New Jersey have begun the process of exploring opportunities to redevelop Penn Plaza East, its former headquarters building adjacent to the historic Newark Penn Station into a potential premier mixed-use development.

The project is a two-phase process that also includes a new headquarters for Horizon in downtown Newark.

NJ Transit, through its real estate broker Jones Lang LaSalle Americas, Inc. (JLL), in conjunction with CBRE representing Horizon, is inviting potential developers to register their interest by Dec. 31.

“The redevelopment of our former headquarters property is a key step in advancing our real estate strategy and our commitment to unlocking new value from our assets,” said NJ Transit President and CEO Kris Kolluri.

“Aligned with the recent launch of our LAND Plan, this project reflects our disciplined approach to generating incremental revenue for NJ Transit while contributing to economic growth across the state and in cities such as Newark through new jobs, housing and long-term investment.”

“Penn Plaza East’s multifaceted, future-facing redevelopment will be a crowning jewel in Newark’s continuing ascent toward next-level vibrancy and prosperity,” said Newark Mayor Ras J. Baraka. “By continuing to call Newark home and redoubling their commitment to our community, Horizon and NJ Transit serve as national models of corporate social responsibility.”

Interested developers who receive the CIM may be invited to attend a future Information Sharing Event hosted by JLL and CBRE. The Information Sharing Event will provide an opportunity for JLL and CBRE to share further details of the anticipated timeline and to answer questions submitted by participants in advance of or during the ISE.

Located within the city’s Newark River Redevelopment Plan, the site could accommodate up to 1,000 units of residential development in addition to integrated retail and structured parking. It is also within proximity to Newark’s historic Ironbound neighborhood.

Two longtime Newark office buildings that have housed NJ Transit and Horizon Blue Cross could be redeveloped with plans for a new residential tower rising up to 30 stories and a new headquarters for the insurer.

NJ Transit and Horizon, which share the Penn Plaza East complex next to Newark Penn Station, announced Tuesday that they’ve begun the process of redeveloping the nearly 4-acre site on Raymond Boulevard.

The proceeds from a deal, if it happens, could help fund NJ Transit operations under the agency’s plan to earn revenue from non-fare sources. For 5,000 Horizon employees, it means they’ll still call Newark home.

While exact proposals will come from developers, concepts for the Penn Plaza East complex envision a premier mixed-use development including a new up-to-1,000 unit residential complex at 1 and 3 Penn Plaza East that could reach 30 stories.

The project also would include developer-funded construction of a new single-tenant 250,000-square-foot Class A building for Horizon’s new corporate headquarters in Newark.

That headquarters would be built by the developer of the Penn Plaza site. Nonprofit Horizon employs over 5,000 people in its Three Penn Plaza headquarters.

“An essential element of this plan is a new headquarters to be built and financed by the developer that allows Horizon to remain in Newark and continue to serve our members in the most financially responsible way possible,” said Doug Falduto, Horizon’s Vice President Administration and Chief Security Officer.

NJ Transit already relocated almost a year ago from One Penn Plaza to offices at 2 Gateway Center in Newark, leased for $500 million for 25 years in a deal that sparked controversy.

The announcement answers the future use for NJ Transit’s former headquarters building which is now 34 years old.

It also aligns with the agency’s new LAND plan, short for Leveraging Assets for Non-farebox Dollars.

That plan details opportunities to earn non-fare revenue from 8,000 acres of NJ Transit-owned real estate and could produce between $1.2 billion and $1.9 billion in revenue for NJ Transit’s operations over 30 years.

“The redevelopment of our former headquarters property is a key step in advancing our real estate strategy and our commitment to unlocking new value from our assets,” said Kris Kolluri, NJ Transit CEO, in a statement.

Potential earnings for NJ Transit have not been estimated.

“The development proposals will be assessed on a set of criteria that will include financial rewards to Horizon and Transit, but other important factors such as the capability of the developer, feasibility of proposal, and the impact on the community will also be considered, said Jim Smith, a NJ Transit spokesperson.

“Local market demand suggests a future development that is primarily residential with some mixed-use,” Smith said. “We expect the developers to propose how best to achieve this on the site, based on a technical understanding of the asset to be shared in the Information Session.”

For the city, redevelopment means additional tax revenue from the NJ Transit headquarters site. Mayor Ras Baraka said the city “embraces this collaboration with full support for the broader public private partnership that it represents.”

“Penn Plaza East’s multifaceted, future-facing redevelopment will be a crowning jewel in Newark’s continuing ascent toward next-level vibrancy and prosperity,” Baraka said in a statement. “Their investment will create new spaces for living, working and recreation, enliven our downtown, enhance our riverfront, and attract residents eager to benefit from the most extensive tri-state rail network in the nation.

The redevelopment is far from a done deal. The first phase is exploratory to gauge interest from developers in the Penn Plaza site, officials said. Potential developers must register their interest by December 31.

“Depending on interest the next step would be a Request for Proposals (RFP) process and the timeline and logistics would be based on the negotiated outcome of that process,” Smith said.

“If there is sufficient interest expressed in this exploratory phase, a formal RFP will be issued, and it will be up to interested developers responding to the RFP to identify the site in Newark they would propose for any future Horizon HQ.” said Thomas Wilson, a Horizon spokesperson.

The Penn Plaza site has several advantages: proximity to trains, buses and light rail at Newark Penn Station and its location on Raymond Boulevard and along the Passaic River.

JLL real estate listings also mentions the commanding views of New York City from the site, especially if plans to build 30-story residential come to fruition.

The site is located in the Newark River Redevelopment Plan and is zoned to allow future construction of up to 30 stories.

Both the redevelopment and office building sites will require approvals from Newark and need to satisfy other regulatory requirements.

The potential project anticipates using the 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 that provide long-term urban revitalization.

NJ Transit began the relocation process in early 2023. The agency moved from its owned headquarters at 1 Penn Plaza to leased space at nearby 2 Gateway Center.

The deal to move to the new headquarters was criticized for keeping details from members of the board of directors until they were asked to vote on it in Feb. 2023. Among the criticisms were that other less costly proposals weren’t considered.

That prompted then board Vice-Chairman Cedric Fulton to resign two days before the board ultimately voted. Fulton is now on Gov.-elect Mikie Sherrill’s transportation transition team.

NJ Transit officials argued it would be too costly to retrofit the former building. Agency documents identified $118 million in rehabilitation work needed at the then 32-year-old building.

The timing of the move also drew fire as the agency faced a mounting fiscal crisis that could have reached a budget gap of $957 million by mid-2026.

In June 2023, the agency signed a $440 million, 25-year lease with Onyx Equities for eight floors at 2 Gateway Center, a deal questioned and criticized by some state lawmakers because it bypassed two lower-priced options.

Parking and outfitting the building pushed the price over $500 million.

3 Penn Plaza East (left) and 1 Penn Plaza East in Newark — Courtesy: JLL

By Joshua Burd

The site of two office buildings in downtown Newark could become up to 1,000 apartments and retail space under a proposal that involves the prospect of a new ground-up, 250,000-square-foot headquarters for Horizon Blue Cross Blue Shield of New Jersey.

The properties, 1 and 3 Penn Plaza East, include the former longtime home of NJ Transit’s corporate office and Horizon’s current headquarters, respectively. The two organizations said Tuesday that they’re now soliciting interest in redeveloping the parcels, which total some three acres across from Newark Penn Station, as well as the initial step of building the health insurer’s new offices at another site in the central business district.

JLL is representing NJ Transit, which recently vacated 1 Penn Plaza East when it moved to the nearby Gateway Two building, while CBRE is representing Horizon in the transaction first reported Tuesday by BINJE. The organizations are working in tandem, noting that both projects would require approvals from the City of Newark and need to satisfy other regulatory requirements, adding that they would seek crucial tax credits under the New Jersey Economic Development Authority’s Aspire program.

The JLL team includes Ron Simoncini, Ryan Robertson, Jose Cruz, Dan Loughlin and Tim Greiner, while CBRE’s Gil Medina is spearheading the CBRE group.

“The redevelopment of our former headquarters property is a key step in advancing our real estate strategy and our commitment to unlocking new value from our assets,” NJ Transit CEO and President Kris Kolluri said. “Aligned with the recent launch of our LAND Plan, this project reflects our disciplined approach to generating incremental revenue for NJ Transit, while contributing to economic growth across the state and in cities such as Newark through new jobs, housing and long-term investment.”

According to BINJE, the plan has been under discussion for more than eight months and with a budget expected to top $500 million. The outlet noted that Edison Properties, which has extensive land holdings in the area, has proposed a lot at the southeast corner of Market and Mulberry streets as a potential site for Horizon’s new headquarters. That property is included in an offering by JLL and CBRE, which notes that it includes an agreed-upon letter of intent to purchase and develop the 250,000-square-foot building leased to the insurer.

“Penn Plaza East’s multifaceted, future-facing redevelopment will be a crowning jewel in Newark’s continuing ascent toward next-level vibrancy and prosperity,” Newark Mayor Ras J. Baraka said. “By continuing to call Newark home and redoubling their commitment to our community, Horizon and NJ Transit serve as national models of corporate social responsibility.

“Their investment will create new spaces for living, working and recreation, enliven our downtown, enhance our riverfront, and attract residents eager to benefit from the most extensive tristate rail network in the nation. Newark embraces this collaboration with full support for the broader public-private partnership that it represents.”

Doug Falduto, Horizon’s vice president for administration and chief security officer, added: “Horizon is excited to work together with NJ Transit to support the mayor’s vision and create new opportunities that bring more residents and retail businesses to the area around Penn Station. We have called Newark home since our founding nearly 100 years ago. An essential element of this plan is a new headquarters to be built and financed by the developer that allows Horizon to remain in Newark and continue to serve our members in the most financially responsible way possible.”

The Penn Plaza properties, which total around 1.2 million square feet, are assumed to be delivered vacant to enable development of the riverfront parcel into a high-end multifamily community, according to JLL and CBRE. Both are steps from Newark Penn Station, New Jersey’s second-largest train station served by both Amtrak and NJ Transit.

“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,” said Medina, an executive vice president with 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.”

Simoncini, an executive vice president with JLL, added: “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. 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 and Horizon are inviting potential developers to register their interest by Dec. 31, 2025, and to visit this link to request a copy of a confidential information memorandum, or CIM, according to JLL and CBRE. Interested developers who receive the CIM may be invited to attend a future information sharing event hosted by the brokerage teams, allowing the firms and other professionals and agencies who have been consulted on the development program to share further details of the anticipated timeline and bidder evaluation criteria, illustrative potential financial models and proformas, while answering questions submitted by participants in advance of or during the event.

NJ Transit may issue a procurement for the project, the agency said. Such process would likely involve a request for proposals and will comply with all applicable laws and regulations, NJT said, adding that attendance at the information sharing event is not mandatory for eventual participation in any procurement process.