Woodmont JV Begins Redevelopment of NJ Industrial Site
The new campus will feature more than 280,000 square feet.
Woodmont Industrial Partners, in partnership with Sagard Real Estate, has broken ground on the redevelopment of a 25-acre industrial site in Rahway, N.J. The project is set for completion in the first quarter of 2027.
The development will comprise two Class A warehouse buildings and is replacing an obsolete 212,000-square-foot facility that has already been demolished.
The first building will offer 201,000 square feet of warehouse space and 3,000 square feet of office space, with a 36-foot clear height, 41 dock doors and two drive-in doors.
READ ALSO: May 2026 National Industrial Report
The second will feature 76,000 square feet of warehouse space and 2,500 square feet of office space, with a 40-foot clear height, eight dock doors and one drive-in door.
Located at 349 and 389 New Brunswick Ave., the site is just off Route 35 and minutes from the Garden State Parkway and New Jersey Turnpike. Port Newark/Elizabeth and Newark Liberty International Airport are within a 30-minute drive.
Over the past year, Woodmont has made multiple moves with its industrial platform in New Jersey, including the sale of 51 New Brunswick Avenue, a 54,113-square-foot Class A industrial property in Woodbridge, the completion of a 152,100-square-foot Class A industrial property in South Amboy, and the recapitalization and acquisition of a 30.6-acre industrial property in Franklin Township.
NJ industrial keeps pace
New Jersey’s industrial real estate sector is clicking along on multiple metrics so far this year. Year-to-date industrial sales volume through April was the second highest in the U.S. at $1.3 billion, and average pricing was among the nation’s top 10, according to a Yardi Matrix report.
The state’s construction pipeline rose sharply from last year to 7.4 million square feet. Deliveries, however, declined year-over-year, helping to keep industrial vacancy below the national rate, alongside continued rent growth.
Another Sagard New Jersey-related move came in March, when the firm and Canada-based La Caisse established a new partnership that will invest at least $360 million in industrial outdoor storage properties across major U.S. infill markets. The focus is initially on key seaport metros, including Southern California, Greater New York/Northern New Jersey, the San Francisco Bay Area, Houston and the Baltimore/Washington, D.C., region.
The partnership’s first acquisition was an IOS asset in the Meadowlands submarket in northern New Jersey. The property is fully leased to a tenant using the site for vehicle fleet management.
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