This is the first acquisition for the partnership of Russo Development and PGIM, which said they secured approvals to build a 200,000-square-foot, Class A industrial building on the site. Demolition of the existing 60,000-square-foot building is expected to take place shortly, and construction of the new building will commence immediately thereafter.
The CBRE Institutional Properties team of Jeffrey Dunne, Jeremy Neuer, Steve Bardsley, David Gavin, Rich Gatto, Fahri Ozturk, Travis Langer and Zach McHale, in partnership with CBRE’s Matthew Saker and Patrick Cavanagh, represented TD Bank and also procured the buyer.
“Russo separated themselves early on in this process and worked through a very challenging approval process. 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,” Dunne, a CBRE vice chairman, commented.
“We appreciate the cooperation and involvement from CBRE and TD Bank as we worked toward obtaining the approvals needed for a successful closing. PGIM was a supportive partner throughout the process, and we look forward to collaborating with them on our first institutional joint venture in this Class A industrial development,” said Michael Pembroke, chief operating officer, Russo Development.
“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. We are confident this will be another in a long line of successful developments for them,” added Neuer, a CBRE executive vice president.