NJ TRANSIT is set to revitalize the area surrounding the Red Bank Station on the North Jersey Coast Line, following an authorization by its Board of Directors to execute a Master Development Agreement (MDA) and ground lease with Red Bank-based developer Denholtz.
The project is the latest move in NJ TRANSIT’s “L.A.N.D. PLAN” (Leveraging Assets for Non-farebox Dollars), a strategic initiative designed to monetize underutilized agency-owned property to create new revenue streams, foster economic growth, and increase public transit ridership.
The development, which spans six acres, aims to transition the area from a traditional “Park & Ride” model to a vibrant “Live & Ride” community. The initiative is split into two phases:
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North Phase: This initial stage will transform approximately four acres into a mixed-use complex. Key features include:
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Residential Units: Approximately 175 rental homes, with 20% designated as affordable housing.
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Retail Space: 15,750 square feet of ground-floor retail.
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Infrastructure Improvements: Enhanced pedestrian and cyclist safety measures, new public open space, landscaping, and modernized bus berths with shelters.
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Parking: A mix of structured and surface parking that includes dedicated spaces for NJ TRANSIT commuters.
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South Phase: This portion remains under evaluation and will be presented to the NJ TRANSIT Board of Directors for future consideration.
The North Phase is governed by a 98-year ground lease, with the net-present value of annual non-farebox revenue payments estimated at approximately $10.5 million. Additionally, NJ TRANSIT will maintain participation in future capital events, such as any potential sale of the leasehold interest.
“This project is exactly the kind of smart, sustainable growth New Jersey needs,” Gov. Mikie Sherrill said. “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.”
NJ TRANSIT President and CEO Kris Kolluri emphasized the broader significance of the partnership. “Transit-oriented development is a critical component of our strategy—not just because it brings in meaningful non-farebox revenue, but because of the contributions it makes to New Jersey’s residents and economies.”
Steven Denholtz, chairman of Denholtz, noted that the project is designed to honor the history of the borough while meeting modern housing needs. “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,” he said.
Through the L.A.N.D. PLAN, NJ TRANSIT intends to leverage portions of its 8,000-acre real estate portfolio to generate up to $1.9 billion in non-farebox revenue for the agency, with additional significant economic benefits projected for the state and local municipalities over the next 30 years.
