Marcus Partners recently secured a site at 35 South Jefferson Road in Whippany and began construction to tear down office space and develop a 72,000-square-foot Class A logistics facility.
The project is expected to be completed in the third quarter of 2026 as the firm extends its strategy of identifying change-of-use opportunities and developing in-demand industrial facilities.
Among the 58 markets tracked by CBRE Research, 23.3 million square feet of office space is on track for conversion to other uses, this year, outpacing the 12.7 million square feet of expected new office supply. According to real estate information company CoStar, for the first time since at least 2000, more office space will be removed via conversion or demolition than added through construction.
“Our expertise in finding these underutilized and outdated properties with exceptional regional access has continued to deliver successful projects and returns for our investors,” said Todd Minerley, senior vice president, investments for Marcus Partners.
“Whether it is Class A logistics space or new multifamily properties, unlocking the value in these metrocentric sites is proving our strategy continues to be sound and dynamic in multiple markets.”
The project includes demolition of an existing 40,000-square-foot vacant office building and construction of a modern, 36-foot clear, 72,000-square-foot warehouse/distribution facility on the 6.6-acre site. The size and flexible design make the new building ideal for single or multi-tenant use in a supply-constrained market. The new modern, efficient space is set to benefit from high continued tenant demand in the sub-100,000-square-foot segment.
Truist Bank is working with Marcus Partners as lender for the transaction. Chris Koeck and his team from Newmark brokered the transaction. Michael Klein and Mike Lachs of JLL assisted Marcus Partners with the debt placement.
Marcus Partners is a vertically integrated real estate firm with a team headquartered in Boston, with regional offices in Metro New York and the Mid-Atlantic. The firm focuses on strategic and opportunistic investment strategies across industrial, multifamily, and other property types.
