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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