Greystone Management Solutions, a leading real estate advisor to the nation’s largest transit authorities, continues its successful partnership with NJ TRANSIT to develop non-farebox revenue for the agency. NJ TRANSIT reports an additional $800,000 in leasing revenue for Fiscal Year 2018, which will grow leasing revenue to $8.5 million in Fiscal Year 2019.
This additional revenue is a result of Greystone’s and NJ TRANSIT’s efforts to secure two new specialty retailers at Newark Penn Station in 2018: Top Shelf Wine and Liquor and Starbucks.
Top Shelf Wine and Liquor, which is located in the main concourse of the station, is expected to generate $2.1 million in revenue. The store was selected through a competitive Request for Proposals (RFP) process, which is administered by Greystone pursuant to its real estate advisory agreement with NJ TRANSIT. The vendor was selected in part due to its proposed architectural design – it includes historic elements of the station, designed to blend into the station’s Art Deco and Neo-Classical design features, boosting visual aesthetics in the station.
Additionally, working with Greystone, the agency has secured a new Starbucks location to be located in a 1,000 square foot retail space in the main corridor of the station. The 10-year agreement provides NJ TRANSIT with over $1.6 million in non-farebox rent revenues, in addition to approximately $750,000 in leasehold improvements. The addition of Starbucks also brings NJ TRANSIT customers increased dining options, adding to the station’s varied mix of retail uses.
“We’re proud to supplement and support NJ TRANSIT’s Real Estate & Economic Development team in maximizing the value of the agency’s real estate assets,” said Greystone Project Executive Michael Plesnitzer. “Our team continually seeks new opportunities to improve both the customer experience for NJ TRANSIT’s customers, as well as the bottom line.”
Under the terms of its real estate advisory agreement with NJ TRANSIT, Greystone provides the agency with a team of dedicated real estate professionals who prepare and administer RFPs and transactional documents for retail, vacant and excess land, right of way utility agreements, and parking operator agreements. Greystone additionally provides tenant management services for the entire real estate portfolio and provides Transit-Oriented Development advisory services.