Prism Capital Partners Secures Commercial Real Estate Financing for Power Plant Modernization at ON3 Mixed-Use Campus in New Jersey

Prism Capital Partners has closed commercial real estate financing to continue modernization of the 10-megawatt co-hybrid power plant at its ON3 mixed-use campus spanning Clifton and Nutley, New Jersey. PSE&G provided a grant and interest-free loan, with additional financing secured through Peapack Private Bank & Trust, to support replacement of aging wood-structured cooling towers with modern fiberglass models.

The financing supports infrastructure upgrades at the 116-acre campus, which currently includes 1.55 million square feet of fully occupied space with plans for up to 2 million additional square feet of real estate development. ON3 is the first mixed-use redevelopment in New Jersey to integrate a central utility plant into its operation, reducing energy draw from the grid and providing power redundancy for tenants.

Power Plant Infrastructure at Mixed-Use Development

The power plant at the ON3 campus was originally constructed by Hoffmann-La Roche in 1943, with several additions in the 1950s, 1960s, and 1970s. The facility was renovated in 1985 with installation of cogeneration equipment to provide supplemental energy on campus.

"Establishing an energy infrastructure that will support New Jersey's economic growth is top of mind in our state, and rightly so," said Eugene Diaz, principal partner at Prism Capital Partners. "ON3's power plant was renovated in 1985 with the installation of cogeneration equipment to provide supplemental energy on campus. Ongoing modernization of this utility will make ON3 even more self-sufficient as development accelerates. PSE&G recognizes the long-term value, and we are grateful for their partnership."

The new high-efficiency cooling towers bring the advantage of free cooling during colder months. Prior plant updates under Prism's ownership included installation of automated switching to maintain power on campus during service interruptions, as well as installation of a more robust supply and power distribution network throughout the site. Prism continues to explore options for incorporating new technologies, from batteries to steam-driven equipment.

Campus Tenants and Development

The campus continues to take shape with recent tenant commitments. Chase Properties and Chipotle will join Starbucks as ON3's initial retail tenants. Hackensack Meridian Health & Wellness Center at Clifton also occupies space at the campus.

"We are 'Power-Empowered,'" noted Edwin Cohen, principal partner at Prism Capital Partners. "It is one of many operational advantages that have helped us transform this 116-acre complex into a world-class, multi-tenant lifestyle hub integrating office and R&D, educational, residential, recreational, retail, hospitality and wellness facilities."

Commercial Real Estate Financing for Energy Infrastructure

The financing package from PSE&G and Peapack Private Bank & Trust supports the campus's centralized heating, cooling, and electricity systems. The onsite infrastructure supplies power to tenants in an economical and sustainable manner, with the modernization enhancing the campus's self-sufficiency as real estate development accelerates.

The financing amounts were not disclosed. PSE&G's support through a grant and interest-free loan reflects recognition of the long-term value of energy-efficient infrastructure in supporting New Jersey's economic development.