Listen to this articleThe basics:
- NJ Transit, Horizon propose 1,000 apartments and new HQ in Newark
- JLL, CBRE soliciting developer interest for the 3-acre site
- Plans include a 250,000-SF class A office tower for Horizon
- Project aligns with NJ Transit’s LAND Plan to boost long-term revenue
NJ Transit and Horizon Blue Cross Blue Shield of New Jersey are presenting a development opportunity that would transform Newark offices owned by the entities into a new mixed-use development featuring 1,000 apartments.
In addition to the residential revamp, plans also include construction of a new, single-tenant Class A office building. That 250,000-square-foot base would serve as Horizon’s new headquarters.
JLL and CBRE announced Dec. 2 they will collaborate on behalf of ownership to solicit interest in the project. Situated on 3 acres, the spot offers unobstructed views of the Passaic River and New York City skyline. It also presents potential for the city. The redevelopment would feature easy access to Newark Penn Station, along with the Ironbound.
Having formerly occupied 1 Penn Plaza East, NJ Transit recently moved to Gateway Center in Newark after signing a 25-year agreement for approximately 407,000 square feet of space. Built in 1992, Horizon BCBS purchased its 21-story headquarters at 3 Penn Plaza East for $145.8 million in 2010. The company has called Newark home since its founding almost a century ago.
JLL and CBRE noted both the redevelopment work and the office building site will require city approvals. The former represents NJ Transit while the latter is representing Horizon Blue Cross Blue Shield.
Get in on the action
Potential developers should register their interest here by Dec. 31, 2025, to receive a copy of a Confidential Information Memorandum with further information.
Interested developers may also receive an invite to attend a future Information Sharing Event hosted by JLL and CBRE. The ISE would offer:
- Additional details regarding the anticipated timeline and bidder evaluation criteria
- Illustrative potential financial models and proformas
- Answers to questions either submitted in advance of or during the event
The commercial real estate firms said NJ Transit may also issue a procurement for the project. If it commences that process, it is expected to involve a Request for Proposals. Attendance at the ISE is not mandatory for eventual participation in any procurement process.
Bigger picture
NJ Transit also disclosed details about the proposed two-phase process Tuesday. For the agency, the move coincides with an updated real estate strategy.
Unveiled in October, NJ Transit has said its LAND Plan could generate up to $1.9 billion in non-fare revenue over the next 30 years. According to NJ Transit CEO Kris Kolluri, the move to redevelop the agency’s former HQ is a “key step” in advancing that strategy.
The chief executive said both initiatives reflect “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.”
Newark Mayor Ras Baraka spoke positively about the project. Commenting on the proposal, he said the “future-facing redevelopment will be a crowning jewel in Newark’s continuing ascent.”
Baraka also highlighted the buy-in from local tenants and corporate anchors Horizon and NJ Transit. “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,” he said. “Newark embraces this collaboration with full support for the broader public private partnership that it represents.”
CBRE Executive Vice President Gil Medina also noted “the coordinated effort,” which will keep both organizations in the city while advancing redevelopment aspirations.
“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,” Medina said.
JLL Executive Vice President Ron Simoncini noted the project evolved out of “many months of discussion.”
The parties anticipate tapping into local resources to help bring the project to fruition. JLL and CBRE specifically highlighted the New Jersey Economic Development Authority’s Aspire NJ program. That incentive program aims to close financing gaps for large-scale, mixed-use projects that drive long-term urban revitalization.
“The ASPIRE program facilitates just this sort of opportunity,” Simoncini said. “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,”
Recent Aspire awards also support work in Jersey City, HELIX H-3 in New Brunswick, and the program’s first industrial project designee in Secaucus.
