Netflix Acquires 292-Acre NJ Site for $848M Studio

Netflix has reached an agreement with the Fort Monmouth Economic Revitalization Authority (FMERA) to acquire a 292-acre mega-parcel at a former US Army base in NJ as the site of an $848M studio the streaming giant is planning to build.

Netflix will pay $55M to acquire the parcel, which was offered for purchase by FMERA—the agency that has spent more than a decade trying to redevelop the former US Army base at Fort Monmouth—after Netflix let it be known that it wanted to move its studio out of Georgia.

Netflix was one of four bidders to respond when FMERA put out requests for offers to purchase for the mega-parcel in March. The streaming giant was chosen as the winning bid in October, pending a deal for the acquisition of the parcel.

FMERA on December 21 approved the agreement, which commits Netflix to $848 million in capital investments to develop the 292-acre parcel, adjacent to Route 35 in Eatontown and Oceanport on the Jersey Shore.

Netflix’s studio plans will be completed in two phases over the course of several years. The first phase of the project will include the construction of 12 soundstages ranging from 15K SF to 40K SF with a minimum total buildout of 180K SF and a maximum buildout of 480K SF.

Netflix said the remainder of the property is slated for redevelopment with supporting film uses and several community amenities. Ancillary development will include office space, production services buildings, mill space and studio backlots. Netflix said it may also develop consumer-facing components, such as retail and consumer experiences.

The $848M project, which will bring 1,500 permanent jobs with it, was hailed by Gov. Phil Murphy as a huge win for the Garden State and for FMERA, which was tasked with redeveloping Fort Monmouth, which was Monmouth County’s largest employer—with more than 15,000 jobs—when it was shuttered in 2011.

The success in luring the East Coast production facility of Netflix to Fort Monmouth cements NJ’s growing reputation as a top-tier film and TV production hub, Murphy said, in an announcement of the deal.

“This transformative investment will serve as a cornerstone in our efforts to create a thriving industry from whole cloth,” Murphy said. “As a result of nearly a billion dollars in film production spending, New Jersey will further solidify its status as an emerging national leader in the television and film industries.”

The NJ governor said the new studio would lift the regional economy of Northern New Jersey.

“Netflix’s substantial direct investment will stimulate job creation and spark an entirely new ecosystem of housing, hotels, and ancillary businesses and services, bringing with it countless additional jobs and boosting the regional economy,” Murphy said.

The Netflix deal is the second major film and TV production announcement in NJ this fall. In September, Togus Urban Renewal announced plans to build a $900M, 1.5M SF film production hub on a 60-acre site that was once a Texaco gasoline refinery next to the Bayonne Bridge.