Developer Denholtz plans to break ground next year on the redevelopment of NJ Transit’s property surrounding Red Bank train station. SUNAYANA PRABHU
By Sunayana Prabhu
RED BANK – Construction on six acres of land owned by NJ Transit around the Red Bank train station is expected to begin in the first half of 2027. The project is part of the borough’s larger redevelopment plan to revitalize the train station area and the West Side. The area will be redeveloped into a mixed-use transit-oriented community featuring rental apartments, retail and parking.
NJ Transit’s board of directors voted last week to authorize a Master Development Agreement (MDA) and ground lease with its designated developer, Denholtz, for the agency’s long-planned transit-oriented redevelopment.
The June 10 authorization now allows the Red Bank-based developer to proceed with the transformation of the land, currently occupied by parking lots on the north and south sides of the Red Bank Station, part of the North Jersey Coast Line.
Steven Denholtz, chairman and CEO of Denholtz, confirmed in an email June 15 that construction would begin in the first half of 2027.
The project will be developed in two phases. The first, the North Phase, will include approximately 175 rental apartments, with 20% designated as affordable housing, along with 15,750 square feet of ground-floor retail space.
The plan includes dedicated NJ Transit commuter priority parking on approximately four acres at the Red Bank station.
According to the agency, as part of this first phase, public infrastructure enhancements will include new pedestrian and cyclist safety and access improvements, new public open space, landscaping and dedicated bus shelters. NJ Transit will retain approval rights on the design, phasing, financing and construction plans, as well as station access and interim parking plans.
The North Phase is covered under a 98-year ground lease with Denholtz. The agency estimates nearly $10.5 million in annual non-farebox revenue payments (revenue generated from sources other than train fares) from Denholtz over the lease term. NJ Transit will participate in any future sale of the leasehold interest in the site.
The South Phase of the project is subject to further study and will be presented to NJ Transit’s board of directors at a later date.
‘LIVE & RIDE’
NJ Transit president and CEO Kris Kolluri said in a release that transit-oriented development is “a critical component of NJ TRANSIT’s 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.”
The L.A.N.D. plan, launched by former Gov. Phil Murphy in 2025 and advanced by Gov. Mikie Sherrill, seeks to redevelop NJ Transit’s underused properties to generate revenue and encourage housing and economic growth.
“This project is exactly the kind of smart, sustainable growth New Jersey needs,” Sherrill said in the release. “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.”
The plan aims to generate up to $1.9 billion in non-fare-box revenue, up to $14 billion in statewide economic impact, and $1.6 billion in municipal revenue over 30 years by leveraging portions of its 8,000-acre real estate portfolio which includes properties surrounding NJ Transit stations. The NJ Transit project in Red Bank supports the L.A.N.D. strategy, the agency said.
Besides lease payments to NJ Transit for the redevelopment of the North Phase, Denholtz said it may also have to negotiate separately for PILOT (Payment In Lieu Of Taxes) payments to the borough. Although a PILOT agreement with Red Bank has not yet been finalized, Denholtz said the payments to the borough would exceed $1.5 million annually for the project.
“We look forward to continuing that dialogue with the borough as the project advances,” he said.
Denholtz is also the borough’s officially designated re-developer for the larger redevelopment plan, which spans nearly 25 acres around the train station. Redeveloping six acres of NJ Transit-owned property is part of that larger plan.
“We are proud to play a small part in all of the wonderful new initiatives undertaken by the borough,” Denholtz said. The NJ Transit project “will preserve the historic architecture of downtown Red Bank and bring new housing, including affordable units, street-level retail, vibrant community space, and improved connectivity for commuters.”
Denholtz also constructed The Rail at Red Bank, adjacent to the train station. Opened in 2022, The Rail is a 57-unit mixed-use luxury residential apartment complex with 20% affordable units and 6,000 square feet of ground-level retail space. Denholtz is headquartered near The Rail across Chestnut Street.
The article originally appeared in the June 18 – 24, 2026 print edition of The Two River Times.
