30-Year PILOT Agreement Paves Way for New Industrial Growth in Parsippany

Saxum Real Estate and Penwood Real Estate Investment Management announced plans to build a 128,000-square-foot speculative warehouse in Parsippany, New Jersey, after acquiring the 10-acre site at 7 Campus Drive. The project includes demolishing a 156,000-square-foot office building and has received all necessary approvals for construction to start this summer. A 30-year Payment in Lieu of Taxes (PILOT) agreement with Parsippany is intended to foster long-term economic growth. Completion is expected in the fourth quarter of 2026, with the warehouse designed to accommodate warehouse, distribution, light manufacturing, and assembly uses. The strategic location near major highways, including Interstates 287 and 80, positions it favorably for logistics operations and places over 11 million consumers within an hour's drive.

Developers highlight the site’s access to high-quality labor and market-leading specifications, aiming to attract sophisticated industrial tenants. Steve Feinberg from Saxum expressed excitement about the partnership, while Andrew MacDonald from Penwood noted the potential to transform the site into a sought-after logistics facility. This development marks a significant investment in the local economy and reflects growing demand for industrial space.