Development of New Speculative Warehouse at 7 Campus Drive, Parsippany

Project Overview and Economic Impact

A vacant office building located at 7 Campus Drive in Parsippany is scheduled for demolition to make way for a new 128,000-square-foot speculative warehouse. This initiative is a joint venture between Saxum Real Estate and Penwood Real Estate Investment Management LLC. The project includes a 30-year Payment in Lieu of Taxes (PILOT) agreement with the Township of Parsippany-Troy Hills, designed to foster long-term economic growth and stability for the community and future tenants.

Development Details and Timeline

1. Acquisition of a 10-acre tract at 7 Campus Drive by Saxum Real Estate and Penwood Real Estate Investment Management LLC.
2. Demolition of the existing 156,000-square-foot office building.
3. Obtaining all necessary site plan and agency approvals.
4. Commencement of construction planned for summer 2025.
5. Projected completion in the fourth quarter of 2026.

Warehouse Specifications and Market Appeal

• 36-foot clear ceiling heights to accommodate diverse industrial needs.
• Robust power capacity supporting advanced operational requirements.
• Design tailored for warehouse, distribution, light manufacturing, and assembly uses.
• Targeting sophisticated industrial tenants to meet growing market demands.

Strategic Location and Accessibility

The site’s strategic location enhances its appeal, situated just minutes from Interstates 287 and 80, and within 30 miles of major transportation hubs including New York City, Newark Liberty International Airport, and Port Newark-Elizabeth. This positioning provides access to over 11 million consumers within a one-hour drive, supporting sustainable economic development aligned with SDG 8 (Decent Work and Economic Growth) and SDG 9 (Industry, Innovation, and Infrastructure).

Stakeholder Statements and Transaction Details

• Steve Feinberg, Director of Investments – Industrial at Saxum, emphasized the project’s potential as a premier headquarters destination due to its location and building specifications.
• Andrew MacDonald, Senior Vice President for Acquisitions at Penwood, expressed enthusiasm for the partnership and the transformation of the site into a sought-after logistics facility.
• The sale was brokered by Cushman & Wakefield, involving agents David Bernhaut, Gary Gabriel, Kyle Schmidt, Ryan Larkin, and Seth Zuidema.
• The transaction closed at approximately $16.3 million, with the seller being The Birch Group.

Alignment with Sustainable Development Goals (SDGs)

• SDG 8: Decent Work and Economic Growth – The project promotes sustained economic growth and job creation through the development of modern industrial facilities.
• SDG 9: Industry, Innovation, and Infrastructure – By incorporating advanced design elements and robust infrastructure, the warehouse supports innovation and resilient industrial development.
• SDG 11: Sustainable Cities and Communities – The redevelopment of a vacant property into a productive logistics hub contributes to sustainable urban development and efficient land use.
• SDG 17: Partnerships for the Goals – The collaboration between Saxum Real Estate and Penwood Real Estate Investment Management LLC exemplifies effective partnerships driving sustainable development.

1. Sustainable Development Goals (SDGs) Addressed or Connected

1. SDG 8: Decent Work and Economic Growth
   • The article discusses the development of a new warehouse facility aimed at bringing long-term economic benefits and appealing to industrial tenants, which relates to promoting sustained economic growth and productive employment.
2. SDG 9: Industry, Innovation, and Infrastructure
   • The construction of a modern warehouse with advanced design elements supports the development of resilient infrastructure and promotes sustainable industrialization.
3. SDG 11: Sustainable Cities and Communities
   • The redevelopment of a vacant office building into a logistics facility contributes to sustainable urban development by optimizing land use and infrastructure.

2. Specific Targets Under Identified SDGs

1. SDG 8 Targets
   • Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading, and innovation.
   • Target 8.3: Promote development-oriented policies that support productive activities and decent job creation.
2. SDG 9 Targets
   • Target 9.1: Develop quality, reliable, sustainable, and resilient infrastructure to support economic development and human well-being.
   • Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency.
3. SDG 11 Targets
   • Target 11.3: Enhance inclusive and sustainable urbanization and capacity for participatory planning and management.

3. Indicators Mentioned or Implied in the Article

1. For SDG 8
   • Indicator 8.2.1: Annual growth rate of real GDP per employed person, which can be implied through economic benefits and job creation from the new warehouse.
   • Indicator 8.3.1: Proportion of informal employment in non-agriculture sector, indirectly related to the formal industrial jobs expected.
2. For SDG 9
   • Indicator 9.1.1: Proportion of the rural population who live within 2 km of an all-season road, implied by improved infrastructure connectivity near major interstates and transport hubs.
   • Indicator 9.4.1: CO2 emission per unit of value added, which could be relevant to the sustainable design elements of the warehouse.
3. For SDG 11
   • Indicator 11.3.1: Ratio of land consumption rate to population growth rate, implied by redevelopment of vacant land to optimize urban space.

4. Table of SDGs, Targets, and Indicators

Source: parsippanyfocus.com