The New Jersey Economic Development Authority (NJEDA) Board has 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.
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