Listen to this articleA joint venture working to replace outdated office space with an industrial development in Parsippany has secured construction financing.
Cushman & Wakefield announced Dec. 4 serving as exclusive advisor to Summit-based Saxum Real Estate and Penwood Real Estate Investment Management LLC through its seventh value-added investment vehicle. The global commercial real estate service firm said it arranged $19.6 million in funding for 7 Campus Drive. Univest Bank and Trust Co. provided the loan. According to C&W, it represents Univest’s third loan with Penwood.
Formerly a vacant, 156,000-square-foot office property, the work in Parsippany will transform the 10-acre lot. Situated within the Interstate 80 Corridor, a Class A industrial facility with 128,150 square feet will rise in its place. The move will repurpose the land amid an evolving commercial real estate landscape.
Vice Chairman John Alascio, Managing Directors Chuck Kohaut and TJ Sullivan, and Mary Shin of Cushman & Wakefield’s Equity, Debt & Structured Finance team arranged the financing.
According to Parsippany Focus, the project includes a 30-year Payment In Lieu of Taxes (PILOT) agreement with Parsippany-Troy Hills.
Offering strategic design and heavy power, the final product will accommodate last-mile and regional distribution, as well as modern manufacturing users, according to CushWake.
Supported by two points of ingress and egress, 7 Campus Drive will feature:
- 36-foot clear heights
- 23 dock doors
- Two drive-in doors
- 103 car parking spaces
- A 130-foot truck court
- 4,000 amps of power capacity
7 Campus Drive offers immediate access to Route 10 and Interstates 287 and 80. It provides connectivity to New York City, Newark airport, and the Port of New York and New Jersey. Additionally, it provides access to more than 11 million consumers within a one-hour drive, according to Cushman & Wakefield — along with a dense labor pool.
“This project exemplifies the continued evolution of Northern New Jersey’s office-to-industrial transformation, where highly accessible, underutilized sites are being repositioned to meet demand for modern logistics facilities,” Alascio said. “Saxum and Penwood each have a reputation of delivering institutional-quality industrial assets, and we’re proud to have structured a financing solution that supports their vision for this exciting development.”
Construction is underway, with completion slated for 2026.
The JV acquired the site in June. In 2020, Mack-Cali Realty Corp. sold 7 Campus Drive for approximately $12.75 million to the Birch Group. CoStar put the latest sale price at $16.3 million.
