PARSIPPANY — 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 project, which includes a 30-year Payment in Lieu of Taxes (PILOT) agreement with the Township of Parsippany-Troy Hills, aims to bring long-term economic benefits to the property and its future tenants.
The developers, Saxum Real Estate and Penwood Real Estate Investment Management LLC, announced they’ve acquired the 10-acre tract at 7 Campus Drive. They plan to raze the existing 156,000-square-foot office building and have received all necessary site plan and outside agency approvals to begin construction this summer.
Completion is slated for the fourth quarter of 2026. The new warehouse will feature 36-foot clear ceiling heights, robust power capacity, and advanced design elements tailored for warehouse, distribution, light manufacturing, and assembly uses—appealing to a growing market of sophisticated industrial tenants.
“7 Campus Drive’s strategic location, proximity to high-quality labor, and market-leading building specifications position the project as a premier headquarters destination,” said Steve Feinberg, Director of Investments – Industrial at Saxum. “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 brokered the sale to the joint venture, which includes Summit-based Saxum and Penwood Select Industrial Partners VII LP. According to a post by Traded NJ, the seller was The Birch Group, which purchased the building from Mack-Cali Realty Corp. approximately five years ago. The transaction closed at roughly $16.3 million.
“The entire Penwood team is thrilled to close our first partnership deal with Saxum,” said Andrew MacDonald, Senior Vice President for Acquisitions at Penwood. “We look forward to transforming this site into a sought-after logistics facility.”
The developers highlighted the site’s ideal location—just minutes from Interstates 287 and 80, within 30 miles of New York City, Newark Liberty International Airport, and Port Newark-Elizabeth—placing more than 11 million consumers within a one-hour drive.
