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Deals & Dealmakers

A Joint Venture Between Russo Development and PGIM Real Estate Closes on Former TD Bank Office in Mahwah

Russo Development and PGIM have responded to a logistics and distribution industry that is demanding more locations in New Jersey with plans to build a 200,000 SF class A warehouse facility on the former TD Bank corporate office’s site located at 1000 MacArthur Boulevard in Mahwah, NJ.

“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, COO of Russo Development. “We’re providing a solution that will foster job growth by demolishing an outdated office building and replacing it with a modern flex/distribution facility.

The new development will provide much needed additional, efficient distribution space to meet the ever-growing demands of ecommerce in one of the most densely populated areas of the state. Surrounded by a dynamic highway network and in close proximity of New York City, 1000 MacArthur answers a need in the area that has seen little new development in the past 20 years.

“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,” continued Mr. Pembroke. “PGIM was a very collaborative partner throughout the process, and we look forward to partnering with with them on our first institutional joint venture in this Class A industrial development”. 

The existing office structures have been fully demolished, and the development team is
in the midst of completing the construction pad, installing underground detention and will be pouring foundations ahead of moving into vertical construction in the coming weeks. Development schedules are tracking a Spring 2023 occupancy date.

Cushman & Wakefield’s industrial leasing team headed by Bill Waxman, Tom Tucci and
Christine Eberle and Jeff Volpi will representing the team in their efforts to secure a long term, credit worthy tenant.

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