NJ Transit Board authorizes MDA with Denholtz to advance TOD project adjacent to Red Bank Station
The New Jersey Transit (NJ Transit) Board has authorized the agency to execute a Master Development Agreement (MDA) and ground lease with Red Bank-based developer Denholtz to advance a TOD adjacent to Red Bank Station. Once fully executed, Denholtz will have the right to transform six acres of NJ Transit owned land at the Red Bank Station on the North Jersey Coast Line into a mixed-use TOD complex featuring rental homes, retail and parking.
"This project is exactly the kind of smart, sustainable growth New Jersey needs," said New Jersey Gov. Mikie Sherrill. "Transit-oriented development is a top priority of my administration and a central focus of our Housing Governing Council. By advancing development next to the Red Bank Station, we're creating new opportunities for housing, economic development and transit access all in one place. I commend NJ Transit, the Borough of Red Bank and Denholtz for helping build a stronger future for our state."
NJ Transit notes the project will be split into a North Phase and South Phase. The North Phase will feature a residential building of approximately 175 rental homes with 20% dedicated as affordable housing, 15,750 square-feet of ground floor retail, as well as structured and surface parking with dedicated NJ Transit commuter priority parking on an assemblage of approximately four acres owned by NJ Transit and Denholtz at the Red Bank station. As part of this first phase, public infrastructure enhancements will include new pedestrian and cyclist safety and access improvements, new public open space, landscaping and new bus berths with dedicated bus shelters. NJ Transit retains approval rights on the design, phasing, financing and construction plans, as well as station access and interim parking plans.
“This Monmouth County project epitomizes the critical importance NJ Transit plays not just in safely and efficiently transporting people, but in contributing to the economic vibrance of communities and residents,” said New Jersey Department of Transportation Commissioner and NJ Transit Board Chair Priya Jain. “Monetizing the agency’s real estate holdings through transit-oriented development projects like this and other measures brings in non-farebox revenue to support NJ Transit provides much-needed housing and makes it easier for people to access public transportation.”
NJ Transit notes the development is aligned with the Leveraging Assets for Non-farebox Dollars (LAND) Plan, NJ Transit’s roadmap to raise as much as $1.9 billion in non-farebox revenue for the agency, up to $14 billion for the state of New Jersey and up to $1.6 billion in municipal revenues over the next 30 years by leveraging portions of its 8,000-acre real estate portfolio.
According to NJ Transit, the plan highlights how the agency is working with the Legislature, state agencies and local host communities to activate underutilized assets to deliver housing, jobs and recurring non-farebox revenue while improving customer experience and reliability. The LAND Plan is designed to strengthen communities around NJ Transit’s stations while improving service for customers.
“Transit oriented development is a critical component of NJ Transit’s strategy outlined in our LAND Plan–not just because it brings in meaningful non-farebox revenue, but because of the contributions it makes to New Jersey’s residents and economies, transitioning from Park and Ride to Live and Ride communities,” said NJ Transit President and CEO Kris Kolluri.
NJ Transit notes the North Phase of the project is covered under a 98-year ground lease with Denholtz with the net-present value of annual non-farebox revenue payments over the lease term estimated at approximately $10.5 million. NJ Transit will participate in future capital events, including any sale of the leasehold interest.
“We are proud to partner with Denholtz and the Borough of Red Bank to make this critical project a reality,” said NJ Transit Senior Vice President of Real Estate Development and Planning Gagandeep Singh. “This project demonstrates NJ Transit’s commitment to work creatively with the private sector and local communities to add much-needed housing to the area while constructively activating underused property to create vibrant places. Our LAND Plan seeks to replicate this approach at many other sites across the state.”
The agency notes the South Phase of the project is subject to further study and will appear before NJ Transit’s Board of Directors at a later date.
"Working with NJ Transit on this project gives us an opportunity to transform this site in a way that benefits both Red Bank and the broader region," said Denholtz Chairman Steven Denholtz. "We look forward to working with the community to create a thoughtfully designed development that honors the borough's history while expanding housing opportunities, supporting local businesses and strengthening the connection between downtown Red Bank and the train station."