Construction Begins on $85-Million Newburgh South Logistics Center

NEWBURGH, N.Y. — A long-dormant brownfield site in the City of Newburgh is being transformed into a massive distribution hub, marking a major milestone in the region’s economic revitalization. On July 16, local and state officials joined developer Brookfield Properties and leasing partner Resource Realty for the groundbreaking of the Newburgh South Logistics Center—a speculative 422,000-square-foot facility projected to cost $85 million.

The project is rising on a 49-acre site at 700 South Street, long considered an industrial dead zone. Once completed, the state-of-the-art facility will feature:

75 loading docks
190-foot truck court depth
A solar-powered roof
LEED certification for sustainability

The project has already secured a 10-year PILOT agreement (Payment In Lieu Of Taxes) from the Newburgh Industrial Development Agency, along with other incentives to encourage industrial growth and job creation in the region.

Strategic Location & Tenant Interest

Thomas P. Consiglio, Principal at Resource Realty, emphasized the site’s strategic advantages. Located just one mile from I-84, two miles from I-87, and eight miles from Stewart International Airport, the center offers logistics companies quick access to key markets. It’s advertised as being within a one-day truck drive to one-third of the U.S. population.

“There’s already strong interest from Northern New Jersey firms seeking lower costs and easier access,” Consiglio said. While the property can be subdivided into 150,000-square-foot units, the goal is to lease the space to a single large tenant. Brookfield purchased the land last year for approximately $12.5 million.

Union Labor and Local Support

Vollers, a North Branch, N.J.-based contractor, has already begun site preparation. According to Todd Diorio, President of the Hudson Valley Building Trades, the Newburgh IDA’s strong local labor policy ensures union contractors are playing a major role in the project.

“This is a victory for skilled union labor in our region,” Diorio noted. “Most of the construction jobs created here will benefit local workers.”

Dignitaries Applaud Economic Impact

The groundbreaking ceremony drew a crowd of prominent officials, including:

Orange County Executive Steve Neuhaus
Newburgh Mayor Torrance Harvey
New York State Senator Rob Rolison
Assemblyman Jonathan Jacobson
Orange County Partnership President & CEO Conor Eckert

Neuhaus, a graduate of nearby Mount Saint Mary College, recalled the property’s troubled past. “The obituary for this site was written decades ago,” he said. “You’re bringing this place back to life. This is transformational—not just for the hundreds of construction workers, but for those who will hold permanent jobs here.”

Eckert echoed that sentiment, noting the project is the result of a true public-private partnership. “Brookfield saw the potential—proximity to labor, access to major transportation routes, and market momentum—and they acted on it,” he said.

Mayor Harvey: “A New Newburgh”

Mayor Torrance Harvey framed the development as part of a broader revitalization. “This project represents the rebirth of a new Newburgh—a city that’s focused on creating economic opportunities and growth for its residents and neighbors,” he said. He praised the collaboration between the city, county, state, and local trade unions, adding: “Many hands, many minds, one goal—to move Newburgh forward.”

Brookfield & Resource Realty’s Growing Orange County Portfolio

This isn’t the first collaboration between Brookfield Properties and Resource Realty in Orange County. The two companies previously partnered on a 312,000-square-foot industrial project at 134 Neelytown Road in Montgomery, now fully leased to PrimeSource Building Products.

Additionally, Resource Realty is moving forward with other industrial developments in the area:

A 240,000-square-foot speculative building in Wawayanda, nearing construction
A 241,000-square-foot build-to-suit facility in Hamptonburgh, in partnership with Besando, an Israeli firm

Looking Ahead

As vertical construction begins in the coming months, local leaders are optimistic that the Newburgh South Logistics Center will become a cornerstone for regional economic growth. With its modern design, environmental considerations, and job creation potential, the $85-million facility is poised to breathe new life into an area once left behind.

“This is more than just a building—it’s a symbol of progress and possibility for Newburgh and all of Orange County,” said Eckert.