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 are 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.
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.
“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.”
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.
