A project by Saxum Real Estate and Penwood Real Estate Investment Management LLC calls for bringing a new 128,000-square-foot speculative warehouse to the site of a vacant office building at 7 Campus Drive in Parsippany. — Rendering courtesy: Saxum Real Estate
By Joshua Burd
Another vacant office building in Parsippany is set to come down as part of a joint venture’s plan to construct a new 128,000-square-foot speculative warehouse just north of Route 10.
The developers, Saxum Real Estate and Penwood Real Estate Investment Management LLC, announced Tuesday that they’ve acquired the 10-acre tract at 7 Campus Drive. They now plan to raze the existing 156,000-square-foot office building, having received all necessary site plan and outside agency approvals to begin construction this summer.
Completion is slated for the fourth quarter of 2026, they said, noting that the new building will have 36-foot clear ceiling heights with advanced design specifications and heavy power for warehouse and distribution as well as modern manufacturing and assembly, allowing it to capitalize on the market’s increasingly sophisticated tenant requirements.
“7 Campus Drive’s strategic location, proximity to high-quality labor and market-leading building specifications positions the project as a quality headquarters destination,” said Steve Feinberg, Saxum’s director of investments for industrial. “We are very excited to launch our Penwood relationship with this closing and continue our growth together.”
Cushman & Wakefield’s David Bernhaut, Gary Gabriel, Kyle Schmidt, Ryan Larkin and Seth Zuidema arranged the sale to the joint venture, which includes Summit-based Saxum and the value-added investment vehicle known as Penwood Select Industrial Partners VII LP. A post by Traded NJ identified The Birch Group as the seller, while listing the sale price as roughly $16.3 million, in a deal that comes five years after the firm acquired the building from the former Mack-Cali Realty Corp.
“The entire Penwood team is thrilled to close our first partnership deal with Saxum,” said Andrew MacDonald, senior vice president for acquisitions with West Hartford, Connecticut-based Penwood. “We look forward to transforming this site into a sought-after logistics facility.”
In a news release, the firms noted that tenants will be minutes from interstates 287 and 80, providing strong connectivity to 11.1 million consumers within a one-hour drive, and within 30 miles of New York City, Newark Liberty International Airport and Port Newark-Elizabeth. They added that the project has a 30-year payment in lieu of taxes agreement with Parsippany to provide long-term economic benefits to the property and future tenants.
Mack-Cali sells 155,000 sq. ft. office building in Parsippany
