Page 10 - RE-NJ

8 JANUARY 2026
THE
BRIEFING
NJ TRANSIT, HORIZON WEIGH PLAN TO
REDEVELOP NEWARK OFFICE SITES
The site of two offi ce 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 offi ce and Horizon’s
current headquarters, respectively.
The two organizations said in
early December 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
offi ces 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 fi rst reported 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 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 refl ects our disciplined
approach to generating incremental
Kris Kolluri
Courtesy: JLL
3 Penn Plaza East (left) and 1 Penn Plaza East in Newark
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 that would be 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 benefi t 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 offi cer, 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 fi nanced by the developer that
allows Horizon to remain in Newark
and continue to serve our members
in the most fi nancially 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 effi ciently 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 offi ce
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.”