A major redevelopment project in Parsippany is taking shape as a joint venture secures $19.6 million in construction financing to convert an outdated office property into a modern industrial facility. The initiative, led by Summit-based Saxum Real Estate and Penwood Real Estate Investment Management LLC, reflects the ongoing shift in Northern New Jersey’s commercial landscape, where older office space is increasingly repurposed for logistics, last-mile distribution, and advanced manufacturing.
The financing was arranged by Cushman & Wakefield, serving as the exclusive advisor for the project and facilitating the loan through Univest Bank and Trust Co. This marks Univest’s third financing partnership with Penwood, highlighting confidence in the long-term value of institutional-quality industrial assets. Key members of Cushman & Wakefield’s Equity, Debt & Structured Finance team—including Vice Chairman John Alascio and Managing Directors Chuck Kohaut and TJ Sullivan—played a central role in structuring the deal.
The redevelopment site at 7 Campus Drive, formerly a vacant 156,000-square-foot office building, occupies a 10-acre parcel along the Interstate 80 Corridor. Plans call for a Class A industrial facility spanning 128,150 square feet, featuring 36-foot clear heights, 23 dock doors, two drive-in doors, 103 car parking spaces, a 130-foot truck court, and 4,000 amps of power capacity. Strategically located with dual points of ingress and egress, the site provides immediate access to Route 10 and Interstates 287 and 80, connecting seamlessly to New York City, Newark Liberty International Airport, and the Port of New York and New Jersey. Within a one-hour drive, the location reaches more than 11 million consumers, making it highly attractive for logistics and distribution operations.
The project includes a 30-year Payment In Lieu of Taxes (PILOT) agreement with Parsippany-Troy Hills, providing long-term financial structure for the development. Designed to support both last-mile and regional distribution needs as well as contemporary manufacturing requirements, the facility demonstrates how repurposing underutilized properties can address current market demand.
“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,” said John Alascio of Cushman & Wakefield. “Saxum and Penwood each have a reputation for delivering institutional-quality industrial assets, and we are proud to have structured a financing solution that supports their vision for this exciting development.”
Construction is underway, with completion expected in 2026. The joint venture acquired the site in June, following previous transactions that saw the property sell for $12.75 million in 2020 and most recently at $16.3 million, reflecting steady value growth.
With this redevelopment, Parsippany is set to gain a state-of-the-art industrial facility that not only strengthens regional logistics capabilities but also reflects broader trends in New Jersey real estate, where strategic office-to-industrial conversions are reshaping the market. For more details on this and other developments transforming the state’s commercial landscape, visit real estate news.
