Steven Denholtz, CEO of Denholtz, said in 2022 that his company has embraced Red Bank since moving its headquarters there some three years earlier. — Photo by Aaron Houston for Real Estate NJ
By Joshua Burd
Denholtz has taken a key step toward expanding its footprint in Red Bank, where it’s set to become the master developer of six acres of NJ Transit-owned land with plans to create a mix of new rental homes, retail and parking facilities along the North Jersey Coast Line.
That would include a first phase with roughly 175 apartments, with 20 percent reserved as affordable housing, as the agency outlined Wednesday after a vote by its board of directors. It’s now slated to sign a master development agreement and ground lease with Denholtz, whose headquarters is directly adjacent to the rail line, transforming the lots around the agency’s Red Bank station while continuing a push to monetize its vast land holdings.
Published reports note that the parcels are part of a 25-acre area that the borough hopes to redevelop in coordination with Denholtz. NJ Transit, which did not include the locations of the parcels, retains approval rights on the design, phasing, financing and construction plans as well as station access and interim parking plans.
“This project is exactly the kind of smart, sustainable growth New Jersey needs,” Gov. Mikie Sherrill said. “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.”
Aside from 175 rental homes, the initial phase will include 15,750 square feet of ground-floor retail as well as structured and surface parking with dedicated NJ Transit commuter priority parking on a roughly four-acre assemblage owned by NJ Transit and Denholtz, according to a news release. The project, known as the north phase, also calls for public infrastructure enhancements such as new pedestrian and cyclist safety and access improvements, new public open space, landscaping and new bus berths with dedicated shelters.
The agency noted that the first building is covered under the 98-year ground lease with Denholtz, which will equate to an estimated $10.5 million in annual non-farebox revenue payments over the lease term. NJ Transit will participate in future capital events, including any sale of the leasehold interest.
“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,” Denholtz Chairman Steven Denholtz said. “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.”
Such a project is years in the making and follows the firm’s development of The Rail at Red Bank, a 57-unit luxury apartment building adjacent to the train station. That opened in 2022, coming alongside its renovation of an adjacent 29,404-square-foot office building that now serves as Denholtz’s headquarters, part of a plan to activate Red Bank’s lesser-known West Side neighborhood.
Its newly announced deal with NJ Transit furthers the agency’s goal of creating new revenue streams and increasing ridership by advancing transit-oriented development, a policy that Sherrill has embraced and accelerated after it was launched by Gov. Phil Murphy. The plan now calls for raising as much as $1.9 billion in non-farebox revenue for the agency, up to $14 billion for the state 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.
“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 Priya Jain, the state’s Department of Transportation commissioner and chair of NJ Transit’s board. “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.”
Kris Kolluri, the agency’s CEO and president, added: “Transit-oriented development is a critical component of NJ Transit strategy outlined in our L.A.N.D. PLAN (Leveraging Assets for Non-farebox Dollars) — 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 & Ride’ to ‘Live & Ride’ communities.”
NJ Transit noted that the south phase of the project is subject to further study and will appear before its board at a later date.
“We are proud to partner with Denholtz and the Borough of Red Bank to make this critical project a reality,” said Gagandeep Singh, the agency’s senior vice president of real estate development and planning. “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.”
Denholtz unveils luxury rentals, retail space in latest investment in Red Bank
