200,000-Square-Foot E-Commerce Site Begins Construction In Mahwah

MAHWAH, NJ — In response to rising demand in the e-commerce sector for new facilities, a real estate developer and its partner have closed on the sale of the former TD Bank office in Mahwah, with plans to build a 200,000-square-foot, Class A warehousing and distribution center, a spokesperson for the developer said.

After approval from the township's planning board earlier this year, Russo Development and partner PGIM Real Estate have begun construction on the facility at 1000 MacArthur Boulevard. Development schedules are tracking a spring 2023 delivery/occupancy date, the spokesperson said.

“We are very happy to be invested in our second project within the Township of Mahwah,” Pembroke said. “We look forward to partnering with (PGIM) on our first institutional joint venture in this industrial development."

Surrounded by a highway network and in close proximity of New York City, the development will provide additional space to meet robust e-commerce demand.

Now that existing office structures are fully demolished, the development team is completing the construction pad, installing underground water detention and will be pouring foundations ahead of moving into vertical construction in the next few weeks.

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 “We’re providing a solution that will foster job growth by demolishing an outdated office building and replacing it with a modern flex/distribution facility.

Cushman & Wakefield’s industrial leasing team will be representing efforts to "secure a long term, credit worthy tenant," the spokesperson said.