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The basics:

• Prism Capital Partners upgrades 10-MW co-hybrid power plant at ON3
• PSE&G provides energy efficiency incentives, interest-free repayment plan
• Upgrades include replacing wood cooling towers with high-efficiency fiberglass models
• 116-acre mixed-use campus ON3 spans Clifton and Nutley

Prism Capital Partners continues to modernize its 10-megawatt co-hybrid power plant at ON3.

Prism secured financing from Peapack Private Bank & Trust to replace aging, wood-structured cooling towers with modern fiberglass models. PSE&G provided energy efficiency incentives for the tower upgrades, which serve the broader ON3 campus infrastructure. The utility also offered an interest-free repayment option that allows Prism to pay the remaining project balance back over time on its utility bill.

ON3, a 116-acre mixed-use campus that spans Clifton and Nutley, is the first redevelopment project in New Jersey to integrate a central utility plant as part of its operations. The onsite power infrastructure reduces reliance on the regional grid and provides power redundancy for tenants.

The campus currently includes 1.55 million square feet of fully occupied space, with plans for up to an additional 2 million square feet of development.

The power plant was originally built in 1943 by former property owner Hoffmann-La Roche. It expanded over several decades before being upgraded with cogeneration equipment in 1985 to provide supplemental energy on campus. Under Prism’s ownership, the plant has undergone further improvements, including automated switching to maintain uninterrupted power during outages and upgrades to the site’s power distribution network.

The new high-efficiency cooling towers will also allow for free cooling during colder months, improving energy efficiency.

Prism said it continues to evaluate new technologies, including battery storage and steam-driven equipment.

A growing campus

“Establishing an energy infrastructure that will support New Jersey’s economic growth is top of mind in our state, and rightly so,” said Prism Principal Partner Eugene Diaz. “Ongoing modernization of this utility will make ON3 even more self-sufficient as development accelerates. PSE&G recognizes the long-term value, and we are grateful for their partnership.”

Prism executives said the onsite energy system offers a key advantage as the campus grows. ON3 provides centralized heating, cooling and electricity in a more economical and sustainable manner, which has helped attract a wide range of office, research, education, residential, retail, hospitality and wellness tenants, as NJBIZ has previously reported.

Recent additions to the campus include Chase and Chipotle, which will join Starbucks as initial retail tenants. Major occupants already on site include:

• Hackensack Meridian Health and its School of Medicine and Health Center for Discovery and Innovation
• Eisai
• Quest Diagnostics
• The Ralph Lauren Corp.
• Seton Hall University programs
• Modern Meadow
• Proponent Federal Credit Union
• Prism Capital Partners

“We are ‘Power-Empowered,’” said Prism’s Edwin Cohen, principal partner. “It is one of many operational advantages that have helped us transform this 116-acre complex into a world-class, multi-tenant lifestyle hub integrating office and R&D, educational, residential, recreational, retail, hospitality and wellness facilities.”

Editor’s note: Prism Capital Partners issued a revised press release Feb. 25, 2026, to clarify PSE&G project support applies exclusively to the new cooling towers and remove reference to a grant and interest-free loan. The story was updated Feb. 26.