A subsidiary of New Jersey-based Public Service Enterprise Group has sold the sites of two retired coal-fired power plants to an investor in decommissioned real estate properties.
PSEG Power announced the sale to Hilco Redevelopment Partners (HRP). The two sites are the Hudson Generating Station near Jersey City and the Mercer Generating Station in Hamilton Township.
Both were coal-burning power stations built in the 1960s and retired in June 2017. The site of the Hudson station originally goes back to a power plant built in 1906, according to reports.
PSEG reviewed more than two dozen proposals before deciding to sell the sites to Chicago-based HRP. HRP envisions redeveloping the sites as state-of-the-art industrial parks to serve the growing need for regional warehouse distribution hubs in central and northern New Jersey.
“We hope these sites will continue to be productive assets for the communities that hosted the plants for decades,” said John Paul Cowan, senior vice president of operations for PSEG Fossil. “That’s why we sought out a buyer that understands the strategic value of both locations and will leverage the great labor pool in the surrounding areas. Hilco Redevelopment Partners has a track record of success taking on both the remediation of these types of industrial facilities and, most importantly, redeveloping them into economic engines for the people who live in and around the sites.”
HRP also recently acquired retired coal power facilities from Exelon in Boston and NRG in Chicago.
“Our goal with every redevelopment project is to return economic vitality to these dormant industrial sites, giving them a new purpose and generating new strategic opportunities,” HRP CEO Roberto Perez said. “The locations of both the Hudson and Mercer sites offer transformational opportunities to reposition underutilized land into modern industrial parks in one of the strongest warehouse/distribution center regions in the entire country.”
Prior to this deal with PSEG, HRP acquired the former Boston Power Generating Station owned by Exelon Corp. It is in the process of permitting that site into a mixed-use redevelopment featuring a hotel, office space and retail.
In 2017, HRP acquired the decommissioned Crawford Generating Station in Chicago from NRG Energy. It plans to turn that into a warehouse and distribution center.