Woodmont Industrial, Sagard Break Ground on 25-Acre Rahway Warehouse Redevelopment

Woodmont, Sagard Launch Redevelopment of Rahway Industrial Site
CRE Market Beat Take
Redeveloping obsolete industrial stock into modern Class-A space in a corridor where demand exceeds supply underscores investor preference for functionally current assets and supports rent durability for well-located product.

Woodmont Industrial Partners and Sagard Real Estate have started construction on the redevelopment of a long-standing industrial property at 349 and 389 New Brunswick Avenue in Rahway, NJ. The joint venture is repositioning a 25-acre site by demolishing an obsolete 212,000-square-foot building and replacing it with new Class-A warehouse product designed to meet modern logistics requirements.

The project will deliver two separate industrial buildings on the site. The larger facility is planned to include 201,000 square feet of warehouse space paired with 3,000 square feet of office space, creating a total of 204,000 square feet under one roof. The second building is designed for 76,000 square feet of warehouse area and 2,500 square feet of office, totaling 78,500 square feet. Taken together, the redevelopment is expected to add approximately 282,500 square feet of new, purpose-built industrial space to the local market.

According to the development team, the previous structure on the property no longer matched the functional needs of contemporary industrial users. By replacing it with two state-of-the-art, Class-A buildings, Woodmont Industrial Partners and Sagard Real Estate aim to accommodate a broader range of warehouse and distribution requirements while improving site efficiency and overall usability.

The partners have targeted the first quarter of 2027 for project completion. Upon delivery, the buildings are expected to serve tenants seeking modern warehouse configurations with integrated office areas, taking advantage of the site’s scale and updated layout. The phased design, with one larger facility and one smaller building, provides flexibility for users with differing space needs while maximizing the redevelopment potential of the 25-acre parcel.

Commenting on the start of construction, Anthony Amadeo, executive vice president at Woodmont, described the location as an opportunity to deliver new space in a corridor where industrial demand is exceeding available supply. He noted that North Jersey’s industrial market remains strong and that the property’s strategic position supports that ongoing momentum. Amadeo also highlighted the long-term relationship between Woodmont and Sagard, emphasizing that the redevelopment is intended to revitalize the site and contribute to the continued growth of the state’s industrial sector.

With demolition of the outdated facility underway and ground now broken for the new buildings, the project marks a notable industrial upgrade for Rahway. The two-building plan is structured to bring modern design standards and Class-A specifications to an established logistics corridor, aligning the site with current user expectations and regional demand dynamics ahead of the anticipated 2027 completion.

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