Russo Development and PGIM Real Estate are planning a spring 2023 delivery for a new 200,000-square-foot industrial building at 1000 MacArthur Blvd. in Mahwah, as depicted in this rendering. — Courtesy: Russo Developmnent
By Joshua Burd
Russo Development and PGIM Real Estate have completed demolition of a defunct office complex in Mahwah, paving the way for construction of a new 200,000-square-foot industrial building at the site.
According to the firms, the development team is currently completing the construction pad and installing underground detention at 1000 MacArthur Blvd., about a mile from Route 17. They will soon begin pouring foundations ahead of moving into vertical construction in the coming weeks, putting the building on pace for a spring 2023 occupancy.
“Companies have been trending towards smaller office footprints for the past few years, necessitating municipalities and developers to collaboratively find the next best use that will provide rateables, lower property taxes and create new jobs,” said Michael Pembroke, Russo Development’s chief operating officer. “We’re providing a solution that will foster job growth by demolishing an outdated office building and replacing it with a modern flex (and) distribution facility.”
With demand for warehouse space still strong, developers are increasingly seeking to meet that need by razing obsolete office properties such as the 60,000-square-foot former TD Bank corporate office site in Mahwah. Russo and PGIM closed on the site early this year, seeking to capitalize on a location near Route 17, Interstate 287 and other key highways.
The joint venture has tapped a Cushman & Wakefield team led by Bill Waxman, Tom Tucci, Christine Eberle and Jeff Volpi to market the space to prospective tenants.
“We are very happy to be invested in our second project within the township of Mahwah, successfully navigating the approval process with municipal planning that is consistent with the needs of businesses that are committed to locate to the area,” Pembroke added. “PGIM was a very collaborative partner throughout the process, and we look forward to partnering with them on our first institutional joint venture in this Class A industrial development.”