Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SECAUCUS, NJ-Allied Outdoor Advertising bought a 28-acre site just off the New Jersey Turnpike for $120,000 in the early 1980s, planning to put of a string of billboards along the toll road. Somewhere along the way, Allied officials decided the site could be better used as a commercial real estate development.

By 1993, the now-named Allied Junction Corp., based in Rutherford, NJ, had a deal with the State of New Jersey to build a rail transfer station, on-site commuter parking, a new Turnpike interchange and up to five office towers soaring as much as 40 stories. Allied CEO William McCann has termed the $450 million project one that “will take New Jersey out of the shadow of New York. We will create a new landmark.”

The State, through New Jersey Transit and the New Jersey Turnpike Authority, had earlier staked Secaucus Connection LLC, as Allied’s development arm is called, to more than $55 million to get the transit part of the project rolling. The rail transfer station, which will be the largest train station in the state when it’s finished, has been under construction for several years and is targeted for a fall 2002 completion.

Allied has struggled to get financing for the rest of the project. Now, to keep the slow-moving project rolling, the two state agencies have tentatively agreed to give Allied another $84 million to facilitate track relocation and other capital improvements relating to the transit side of the project. State officials won’t comment on the outlay pending approval by the respective boards. Allied has agreed to repay all the public money, now totaling $140 million.

The project remains highly controversial, and all parties involved are loath to comment. Funding remains a question mark, and construction has been slowed by the fact that the elongated terminal building is being built to support the weight of the proposed office towers, which would be built on top of it.

The goal is to provide a transfer point to Midtown Manhattan for New Jersey and Upstate New York commuters whose rail lines currently end to the east in Hoboken. It would also be used as a commuter hub, accessed by the New Jersey Turnpike – hence the need for a new interchange. The office towers would provide a built-in audience so the facility could be used as a commuter destination in its own right.

The schedule for presenting the proposal for the latest outlay to the two boards has not been announced.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. NET LEASE Spring 2021Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information

GlobeSt. NET LEASE Awards 2021Event

These awards honor the industry's most influential and knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.