EverWest/Woodmont JV Acquires New Jersey Office Property for $42.7 Million; Plans Two-Building Class A Industrial Campus

Stephen Feinberg

SOMERSET, NJ ---Underscoring the demand for prime infill industrial sites, EverWest Real Estate Investors, in joint venture with Woodmont Properties, has purchased a 351,782-square-foot office building and adjacent land site in Somerset, New Jersey.

The partnership plans to vacate and demolish the existing improvements for the development of two state-of-the-art, Class A warehouse/distribution buildings totaling over 426,000 square feet.

Anthony Amadeo

The redevelopment site totals approximately 31 contiguous acres at 400 and 600 Atrium Drive. 

It includes an existing, 351,782-square-foot office building and adjacent 7-acre undeveloped parcel.

Upon demolition of the office building, EverWest and Woodmont plan to build two Class A warehouse/distribution facilities totaling 294,000 square feet and 132,000 square feet, respectively.

The buildings will be designed to accommodate a large single user or can be easily divided for multiple tenancy.

Elli Klapper

“Somerset is one of the fastest-growing industrial submarkets in the New Jersey market, with limited existing availability, modest new speculative construction and a growing list of major users and investors turning their interest toward the area,” said EverWest’s Director of Northeast Acquisitions, Stephen Feinberg.

“This project will make the most of those fundamentals, capitalizing on a location that provides immediate access to I-287 while leveraging the area’s excellent labor pool.”

Kevin Dudley 

According to CoStar, industrial rents in Somerset have skyrocketed from below $4 per-square-foot in 2013 to almost $12 per-square-foot today. Current submarket industrial vacancy sits at approximately 4 percent.

Feinberg directed the transaction on behalf of EverWest, in collaboration with Anthony Amadeo of Woodmont and with representation by Elli Klapper, Kevin Dudley and Mark Silverman of CBRE.

The acquisition marks the third transaction in New Jersey between EverWest and Woodmont within the last nine months.

Mark Silverman

“Like most states, New Jersey is experiencing an office vacancy problem, with many employees working from home,” said Klapper.

 “Working with local municipalities in the state who are rezoning their towns allows owners to transition these vacant office buildings to warehouses, which is indirectly helping both the office and industrial sectors.

 "As clients are reducing their office footprints, owners are able to take this product off the market and demolish the buildings for industrial investors. This trend just speaks to how strong the demand is for industrial product in the region."

Contact: 

 

Stacey Hershauer

480.600.0195

stacey@focusaz.com

 

www.woodmontproperties.com. 

 www.everwest.com or www.gwlra.com.