Mahwah industrial redevelopment site sells for $17.5M

Marking the first acquisition of Russo Development and PGIM‘s partnership, CBRE said Jan. 31 that the pair purchased a Bergen County site that will see the construction of a new, Class-A industrial building.

CBRE‘s Jeffrey Dunne, Jeremy Neuer, Steve Bardsley, David Gavin, Rich Gatto, Fahri Ozturk, Travis Langer and Zach McHale of the Institutional Properties group worked with the firm’s Matthew Saker and Patrick Cavanagh to represent seller TD Bank in the $17.5 million sale of 1000 MacArthur Blvd. in Mahwah.

The team also secured the buyer, which CBRE said has approvals to build a 200,000-square-foot industrial facility at the property.

“Russo separated themselves early on in this process and worked through a very challenging approval process,” Dunne said in a statement. “We are delighted to be a part of their first project with PGIM as we expect this will be the first of many deals together.”

According to the commercial real estate services and investment firm, demolition of the site’s current 60,000-square-foot building is expected imminently, with construction commencing thereafter.

“We continue to see antiquated office buildings be redeveloped for higher and better uses and 1000 MacArthur will become Russo’s newest Class A industrial development,” Neuer said. “We are confident this will be another in a long line of successful developments for them.”

CBRE Institutional Properties said it has several other investment opportunities on the market, including the 98%-leased Studio Park in Hamilton; 25 Hanover Road in Florham Park; 80 Park Plaza in Newark, which serves as PSEG’s headquarters; and 211 Mt. Airy Road in Basking Ridge, which is 100% leased to Daiichi Sankyo Pharma for its U.S. headquarters.