The basics:

• Woodmont forms JV with major insurer to acquire 400 Atrium Drive
• Class A warehouse redevelopment will add 370,000+ square feet
• Site replaces vacant office in I-287/Exit 10 submarket
• High demand projected due to port access and limited new supply

A new Class A industrial development is set for the I-287/Exit 10 submarket in Somerset County.

Fairfield-based Woodmont Industrial Partners announced April 23 forming a joint venture with a major U.S. insurance company to recapitalize and acquire 400 Atrium Drive in Franklin Township.

Situated on more than 30 acres, plans for the industrial complex call for more than 370,000 square feet of Class A warehouse space spread across two facilities. The deal and subsequent redevelopment effort represent a first-time collaboration for the new JV.

It will also remove unused space from the market. The new development will replace a nearly 400,000-square-foot Class A office building and massive parking lot at Atrium Corporate Park. The landscape in and around Atrium Drive has undergone a transformation, post-COVID in particular, as office and hospitality spaces give way to new industrial and other redevelopments.

“Atrium Drive illustrates Woodmont’s commitment to delivering high-quality industrial space in one of the Northeast’s most sought after markets,” commented Woodmont Executive Vice President Anthony Amadeo. “With limited new supply expected through 2026, this strategic redevelopment is well-suited for long-term success.”

The deal marks the insurance company’s first establishment in the submarket, according to Woodmont.

What’s coming

Woodmont said the I-287/Exit 10 submarket saw more than 2.8 million square feet of leasing activity last year. Additional industrial tenants in the area include Amazon, Nissan North America, PIM Brands and others.

Beyond “ample surface parking” for cars as well as trailers, the Class A warehouse projects will comprise:

• Building One: approximately 255,000 square feet, offering 40-foot clear height, 44 loading docks and two drive-in doors
• Building Two: a 115,000-square-foot building, featuring 36-foot clear height, 34 loading docks and two drive-in doors

Cushman & Wakefield broker John Alascio and Managing Director Chuck Kohaut coordinated the debt with New York Life.

MyCentralJersey.com reported the purchase price for the 400 Atrium acquisition at $50 million. According to that publication, the new JV purchased the plot from EWA Somerset 400 Owner, a joint venture of EverWest Real Estate Investors (now Sagard Real Estate) and Woodmont.

More redevelopment

Woodmont Industrial Partners is a joint venture between Woodmont Properties, a vertically integrated real estate development and management company established in 1963, and Romark Logistics, a full-service third-party logistics provider offering advanced supply chain and logistic solutions since 1954.

Most recently, Woodmont completed the sale of a 30-acre industrial site and a proposed 353,830-square-foot warehouse in Raritan, as well as a fully leased a 30,046-square-foot Meadowlands warehouse and distribution facility in Lyndhurst. The company is also under construction of a 450,000-square-foot warehouse facility in Warren County in partnership with Brookfield Properties, in addition to several out-of-state projects.

Throughout the U.S., Woodmont says it has approximately 7.5 million square feet of industrial space in its active pipeline, available for occupancy, development and/or renovation.