Through the $25 million Stranded Assets Repositioning Investment policy guidance, NJEDA will consider investment opportunities for the redevelopment and repositioning of underutilized commercial properties and other stranded assets into viable commercial or mixed-use properties which advance Statewide or regional strategies and to strengthen local communities.


The policy for investing in the repositioning of stranded assets and creating new commercial, industrial, or mixed-use development projects builds on Governor Murphy’s economic development strategy and supports efforts to revitalize New Jersey’s neighborhoods by redeveloping real estate space and bolstering tax revenues for local municipalities.   

Repositioning these large, stranded assets and renewing the productive life of these properties will help reinvigorate communities and better align with current market trends. To address the need to invest in repositioning these key stranded assets and repurpose vacant buildings into productive economic assets that benefit the community, EDA will utilize $25 million from funds Governor Murphy and the legislature included in the 2023 Fiscal Year Budget for real estate project funding.


NJEDA staff will consider investment opportunities as staff become aware of such opportunities. In most instances, these arise through receipt of unsolicited proposals for redevelopment of real estate properties. In other cases, staff may become aware of potential Stranded Assets through the regular course of promoting the State and investment and development in the State. Since potential project opportunities for Stranded Assets Repositioning Investments vary greatly and are highly context specific, proposals will be evaluated equitably based on the below parameters. The appropriate structure for a possible investment will be determined after review of the proposal and in consideration of the evaluation criteria and framework outlined below. 

These evaluation factors will also be used to determine the type and sizing of an investment opportunity for a given potential project. 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.  Justification for the type and sizing of an investment opportunity will be included as part of the selected project’s submission to the Board for approval.

  • The degree to which the project advances Statewide and/or regional strategies and objectives.
  • The location of the project, where, at a minimum, the Stranded Asset must be located in New Jersey.
  • Qualifications and experience of the entities that will be involved in developing and operating the project, where partners with demonstratable experience executing similar projects in terms of approach or scale and size are significant factors for consideration.
  • The level of support and quality of commitments from other entities, such as private sector corporations, academic partners, local non-profits, local government entities, etc.
  • The project’s development and operational readiness, where opportunities that can deliver an economic benefit quickly or are ready to be developed will be considered more highly.
  • The economic feasibility of the project, such as:
    • Whether the project’s business model is realistic and sustainable, with a sustainable model being one that will require minimal further State assistance
    • Whether the project will be competitive in the locality, state, or region
    • Whether the quantity of financial support requested from the Authority is both reasonable for the scale of potential impact and adequate to achieve the projected outcomes.
  • The degree to which the project maximizes the leveraging of other sources of funding.
  • The degree to which the project promotes economic development, the creation or retention of jobs, and the stimulation of private sector investment and expansion.
  • The degree to which the project supports the State’s ambition to strengthen its position as the most diverse and inclusive innovation ecosystem in the country, for example by providing opportunities to woman-, minority-, or veteran-owned business.
  • The degree to which the project will engage with the local community and existing industries.
  • The degree to which the project supports development in historically underserved communities.
  • The anticipated return of investment for NJEDA for the given investment structure.


Stranded Assets are defined as underutilized commercial or other property(ies) of at least 50,000 square feet and could include, but are not limited to,

  • Vacant office parks, partially occupied retail malls, former healthcare facilities, or similar vacant or partially vacant building(s).
  • Properties that at one time served a useful function but have now become vacant or partially vacant and are in need of repositioning to meet current market needs/demands.
  • Have a minimum 50% vacancy and a minimum length of vacancy/partial vacancy of one year.
  • For this investment policy, Stranded Assets do not include vacant land.

Repositioning would include projects that undertake redevelopment and reuse of a Stranded Asset with a total project redevelopment cost of a minimum $25 million and which results in a new project with a modified or different use such as one of the following types of real estate development projects:

  • Commercial (including office)
  • Industrial Use/Manufacturing (excluding warehouse)
  • Mixed-use developments; any residential portion must comply with the 20% reservation for low- and moderate-income households required by N.J.S.A. 52:27D-329.9(b)

Repositioning would not include

  1. A simple renovation or redevelopment of a building/property which resulted in the same use as the original building/property.

2. A complete demolition of the Stranded Asset.



If you would like more information about NJEDA’s Stranded Assets Repositioning Investment, please contact