Translate
Facebook
X
Instagram
LinkedIn
Youtube
MEDIA CONTACT
Press Release
May 11, 2023
2 minute read

NJEDA Board Approves Guidelines Establishing the Stranded Assets Repositioning Investment


Approved Projects will be eligible for Investment Funding from $25 Million in State Budget Funds

TRENTON, N.J. (May 11, 2023) – The New Jersey Economic Development Authority (NJEDA) Board yesterday approved a policy for investment in the redevelopment of stranded assets such as vacant or partially vacant office parks, retail malls, healthcare facilities, and similar buildings into new commercial, industrial, or mixed-use development projects. Through the creation of a $25 million Stranded Assets Repositioning Investment, the NJEDA will add to its suite of resources designed to help communities redevelop and reposition their underutilized properties into viable commercial real estate.

“The Stranded Assets Repositioning Investment will allow the NJEDA to directly invest in long-vacant, abandoned, or blighted properties, turning them into vibrant community assets,” said NJEDA Chief Executive Officer Tim Sullivan. “This program is our latest effort to revitalize New Jersey’s neighborhoods by creating new real estate space for businesses and bolstering tax revenues for local municipalities. As economic and work trends have evolved in recent years, supporting viable commercial and mixed-use development is essential to creating sustainable and equitable growth.”

Through the Stranded Assets Repositioning Investment, the NJEDA will consider investment opportunities through unsolicited proposals from redevelopers or through staff awareness in the regular course of promoting investment and development in the state. Proposals will be evaluated equitably based on several factors, including developer qualifications, operational readiness, economic feasibility, and developer engagement with the local community. In line with Governor Phil Murphy’s objective to create the most diverse and inclusive innovation ecosystem in the country, evaluations will also consider the degree to which investment supports woman-, minority-, or veteran-owned businesses and historically underserved communities. Recommended investments will then be presented to the NJEDA Board for final approval.

Stranded Assets Repositioning Investments will be evaluated on a case-by-case basis, considering each project’s unique characteristics to determine total investment funding. The NJEDA will consider investment opportunities in a variety of forms, including joint ventures, real estate partnerships, operating partnerships, and equity investments. Entities entering into an investment agreement with the NJEDA will be subject to normal legal and ethics reviews, State Ethics Commission approval, good standing with New Jersey government agencies, and tax clearance certificate verification from the Department of Treasury’s Division of Taxation.

The Fiscal Year 2023 Appropriations Act, signed by Governor Murphy on June 30, 2022, appropriated $70 million for real estate project funding that supports strategic economic development and spurs statewide economic growth. The Stranded Assets Repositioning Investments will utilize $25 million from those funds.

About the NJEDA

The New Jersey Economic Development Authority (NJEDA) serves as the State’s principal agency for driving economic growth. The NJEDA is committed to making New Jersey a national model for inclusive and sustainable economic development by focusing on key strategies to help build strong and dynamic communities, create good jobs for New Jersey residents, and provide pathways to a stronger and fairer economy. Through partnerships with a diverse range of stakeholders, the NJEDA creates and implements initiatives to enhance the economic vitality and quality of life in the State and strengthen New Jersey’s long-term economic competitiveness.

To learn more about NJEDA resources for businesses, call NJEDA Customer Care at 844-965-1125 or visit https://www.njeda.com and follow @NewJerseyEDA on FacebookTwitterInstagram, and LinkedIn.

###

SHARE

Related Content

Press Release

June 17, 2024

Mixed-Use Development in Downtown Newark Approved for NJEDA Aspire Awards

TRENTON, N.J. (June 17, 2024) – Last week, the New Jersey Economic Development Authority (NJEDA) Board approved a mixed-use residential development project in Newark for Aspire tax credits.

Press Release

June 14, 2024

Murphy Administration Unveils Proposal to Spur Transit-Oriented Development and Bolster NJ TRANSIT

TRENTON, N.J. (June 14, 2024) – The Murphy Administration today unveiled a legislative proposal that would direct the New Jersey Economic Development Authority (NJEDA) to purchase up to $100 million in property from NJ TRANSIT to help expand commuter hubs across the state and meet a variety of critical needs.

Press Release

June 12, 2024

Aspire Tax Credits Add to State Support for Major Film Studio Project in Bayonne

TRENTON, N.J. (June 12, 2024) – The New Jersey Economic Development Authority (NJEDA) Board today approved tax credits under the Aspire Program for 1888 Studios in Bayonne.