By Barbara A. Preston for The Montgomery News | May 21, 2026
Montgomery Township officials want an innovation hub. The owner of 23 Orchard, a 44-acre "underutilized property" with parking for 488 cars and an office building with declining occupancy, wants to earn a profit. Would allowing the construction of luxury rental apartments at the corner of Orchard Road and Route 206 provide the financial resources to update the building?
Montgomery Township Administrator and Planner Lori Savron presented a 32-page PowerPoint overview of a redevelopment concept for the 23 Orchard Road Office Complex in Skillman at the Planning Board meeting on April 27. The meeting attracted about a dozen attendees. (It was not recorded, but the minutes recently became available.)
Savron talked about creating a modern innovation center that supports:
• Research and development,
• Life sciences and biotech,
• Entrepreneurial and startup activity,
• Flexible workspaces,
• Collaboration with regional institutions.
Montgomery officials may need to intervene, according to Savron's presentation, because the site does not meet criteria for external funding from the NJ Economic Development Authority (EDA) or Princeton University. However, township officials have tools to help reposition the site.
Designating the property as a redevelopment site enables flexibility, and would make it possible to employ public-private partnerships and other local incentives to advance the project, Savron said.
Savron highlighted the site’s strategic location near Princeton University and within innovation corridor of Einstein Alley.
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In addition to providing funding to reposition 23 Orchard Road as a vibrant innovation center that supports life sciences, R&D, and entrepreneurial activity — there is a possibility for the redeveloper to pay for new tennis / pickleball courts at the Montgomery municipal center, and opportunities for recreational trails.
The apartments also could provide an alternative for Montgomery residents who want to downsize, and walk to shopping, restaurants, the library, and the bus line.
Savron said action is needed from municipal officials for several reason:
• Declining revenue from 23 Orchard affects municipal budget stability,
• Redevelopment can reverse revenue loss and create long-term ratable growth,
• Strategic reuse/repurposing prevents the property from becoming a stranded asset.
• $6M (2021 sale).
• $4.35M 2024 auction sale.
• $10M 2024 tax assessment.
• $5M and $4M (2025 & 2026 assessment following 2024 tax appeal settlement agreement).
Basically, the value of the property is on a downward trajectory and is reflective of the persistent issues facing this aging property, Savron said. This is evidenced by vacancy rates nearing 90% for at least two consecutive years.
The owner currently pays $174,550 in property taxes.
Savron outlined the redevelopment process, planning goals, and opportunities for continued public input.
The meeting was opened for comments from the public.
Tom Scannapieco, owner of 23 Orchard Road, said he previously developed an arts center in Philadelphia. He stated that many scientists reside within the township who could potentially establish businesses at this location and that the space would offer an accessible price point for early-stage startups. He explained that existing innovation centers in the region are fully equipped and were funded by Princeton University and the state of New Jersey, whereas this facility does not qualify for similar funding. He emphasized the need for a clear vision before the property can be effectively marketed to prospective tenants and noted the importance of identifying a strategy to connect the two buildings on the site. Interesting to note: Scannapieco is a physicist by training. He got into real estate some 40 years ago when he began fixing up and flipping houses in the Art Museum area of Philadelphia.
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Christopher Gittings, also with 1435 Capital Management, said that the company focuses on building community and regularly hosts events aimed at engaging high school and college students. He extended an invitation to the planning board members to attend an upcoming event in order to observe these activities firsthand.
Devra Keenan of Skillman, the former mayor of Montgomery, emphasized the importance of addressing environmental concerns, including the protection of the Bedens Brook stream corridor [which is home to a heron rookery, kingfishers, and American Eagles]. Kennan also emphasized the cost to upgrade the existing building into an Innovation Hub must be clearly identified. She expressed concern the proposed luxury apartments could be constructed without corresponding improvements to the current complex. She further recommended that the affordable housing set-aside for the residential component should exceed 20 percent. She also suggested the township engage a planner with specialized expertise in innovation-focused development.
Curtis Lee of 1435 Capital Management, a tenant at 23 Orchard Road, explained that 1435 Capital Management is an investment firm specializing in early-stage businesses. He said the property presents a strong opportunity for the development of an innovation hub due to its strategic location, the depth of local talent, and the potential involvement of external partners.
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Karen Tuveson of Montgomery Township, founder of nonprofit Catalytic Arts, highlighted the value of the arts within the community and the need to provide appropriate space for such activities. Art events could attract thousands of visitors to the township and future community spaces for artists and art programs should be included in the redevelopment plan, she said.
"This is an opportunity to think bigger," Tuveson said. "Right now, we’re the town you drive through to get to Princeton. Do we want to stay that? Just houses, shopping plazas, and congestion on overburdened roads? We must consider the redevelopment at 23 Orchard as not just building for the sake of commerce or residences — it’s critical to think beyond —to invest in a stronger economic engine—one that balances growth and innovation with cultural and social infrastructure. This integrative approach will support long-term community resilience and well-being.
"The decisions made here, by this planning board, will not just shape a single property—they will also shape the future of what Montgomery becomes."
Lakshmi Raghavan of Healios Labs, a tenant at 23 Orchard Road, said his company was one of the first research and development tenants in the building. The building provides an opportunity for startups to expand and grow, and emphasized the building’s significant potential. L. Raghavan further highlighted the advantages of its central New Jersey location and proximity to Princeton.
Greg Kaganowicz of Montgomery said the proposed apartments would provide an opportunity for residents to remain in the community and maintain independence. He emphasized the need to address and strengthen environmental requirements associated with the project and recommended that the affordable housing component exceed the 20 percent set-aside.
Ed Silverman of Montgomery said the innovation hub should be prioritized ahead of the residential component, with the apartments considered second.
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Nancy Castelino, a Montgomery resident, asked for information regarding the overall cost of the project.
Ben Turavsky, leasing manager for 23 Orchard Road, informed the board that there is active interest from companies seeking to locate at the site.
Dennis Ahn, a Montgomery Township Committeeman, asked the tenants of 23 Orchard Road to describe what improvements they believe are necessary for the building.
Paul Blodgett, a planning board member, stated that 23 Orchard is a significant asset within the township, noting the substantial public investment in the surrounding area, including the new municipal center and library. The objectives presented to the board are "largely boilerplate and should be revised to include more specific details, particularly with respect to environmental goals." Blodgett expressed concern that revenue generated from the proposed apartments would not be sufficient to fund necessary upgrades to the existing office building and emphasized the importance of ensuring that the redevelopment integrates effectively with the surrounding neighborhood.
Blodgett also recommended that the planning board issue a Request for Proposals (RFP) to secure a planner and ensure that the appropriate professional team is in place to prepare the redevelopment plan.
A resolution that would have authorized Clarke Caton Hintz to prepare a redevelopment plan for 23 Orchard was postponed to a future meeting.
