A new two-building, 277,818-square-foot industrial campus at 349 and 389 New Brunswick Ave. in Rahway is slated for completion in late 2026. — Rendering courtesy: Cushman & Wakefield
By Joshua Burd
A joint venture has landed a $56 million construction loan for a project that will bring nearly 278,000 square feet of new high-end warehouse space to Rahway.
Brokers with Cushman & Wakefield represented the borrowers, Sagard Real Estate and Woodmont Industrial Partners, noting that BMO Bank provided the debt in connection with the two-building development at 349 and 389 New Brunswick Ave. That will include facilities of 201,616 and 76,202 square feet with 36- and 40-foot clear ceiling heights, respectively, plus 49 dock doors, three drive-in doors and parking for 230 cars and six trailers.
Cushman’s John Alascio, Chuck Kohaut and TJ Sullivan sourced the loan.
“Sagard Real Estate and Woodmont Industrial Partners have assembled a premier infill development site in one of the most sought-after industrial corridors in the Northeast,” said Kohaut, an executive director C&W. “The size, specifications and connectivity of 349 and 389 New Brunswick Avenue position it to meet the evolving needs of today’s logistics users. We are pleased to have sourced a construction lender in BMO Bank that recognizes the strength of the sponsorship and the exceptional fundamentals underpinning this development.”
Slated for completion in late 2026, the 277,818-square-foot project will occupy some 25.6 acres in the Port South submarket, C&W said. Other features will include ESFR sprinkler systems, 3,000-amp electrical service and electric vehicle- and solar-ready infrastructure.
Woodmont and Sagard, which are frequent partners, aim to attract tenants to a location that’s just off Route 35. That provides easy access to the New Jersey Turnpike, the Garden State Parkway and the Goethals Bridge, while users will be within 30 minutes of Port Newark-Elizabeth, Newark Liberty International Airport and New York City.
The debt placement team added that the Port South submarket continues to demonstrate strong leasing fundamentals driven by port activity and ecommerce growth.
