By Joshua Burd
A developer has signed a ground lease at the Atlantic City International Airport that could pave the way for new industrial space across a 400-acre swath of the property.
The Los Angeles-based firm, Industrial Realty Group LLC, said the pact with the South Jersey Transportation Authority calls for working toward the construction of a new, mixed-use development at the Egg Harbor facility with the potential for multimodal infrastructure. The organizations did not provide specifics about the project, but IRG bills itself as one of the nation’s largest industrial developers, while SJTA pointed to its long-term goal of better using the airport property through new warehouse and logistics space.
“IRG has a wealth of experience in the aviation segment of commercial development,” said Stuart Lichter, the firm’s president. “We have already discussed site opportunities with many job-creating tenants. We believe this momentum will continue to grow because of the property’s location and airport proximity.”
The SJTA noted that, in July 2022, it authorized Executive Director Stephen F. Dougherty to enter negotiations and execute an agreement for the development of the airport’s northwest quadrant. The new lease agreement is the culmination of that plan, the agency said, adding that IRG has also been working with the Atlantic County Economic Alliance on a deal that could stimulate tens of millions of dollars in new private investment in the region.
The authority also pointed to IRG’s vast experience in the conversion and privatization of federal properties, including closed military bases. The firm owns and is master developer of three closed military bases, a former NASA manufacturing facility and a closed Veterans Affairs site.
IRG, through its affiliated partnerships and limited liability companies, operates a portfolio of more than 150 properties in 31 states with over 100 million square feet of rentable space.
“We could not have found a better partner to make this project a reality,” Dougherty said, “and look forward to a rewarding and mutually beneficial business relationship with IRG for many years to come.”
Lauren H. Moore Jr., president of the ACEA, added: “IRG’s proposed development supports our mission to diversify and strengthen the economy of Atlantic County. We look forward to working with IRG and the South Jersey Transportation Authority to support this exciting project.”
According to SJTA, local leaders have keyed on industrial development over the past decade as a means of regional master planning and better using Atlantic City Airport.
“This agreement is conducive with our efforts to explore the development of an air cargo maintenance and repair facility that could result in hundreds of short-term construction jobs and many more long-term jobs,” Atlantic County Executive Dennis Levinson said.
