Developers Sell Downtown Morristown Property To Atlantic Health

MORRISTOWN, NJ — Atlantic Health System, the parent company of Morristown Medical Center, has recently confirmed the purchase of one of the town’s most desirable downtown properties.

The property in question is an acre of land on South Street, next to the Vail Mansion. In early 2022, the horseshoe-shaped property was approved for 29 luxury apartments and ground-floor retail space.

However, a recent sale of that property may have put an end to that.

According to Karen Zatorski, a spokesperson for Atlantic, the company has completed the acquisition but is unable to disclose what the new use of the property will be.

"AHS Investment Corp., a subsidiary of Atlantic Health System, can confirm the purchase of property at 126 and 136 South Street. While the timing of the plans for the mixed-use development of the property remains under internal discussion, Atlantic Health System is proud of its history as a collaborative partner with the greater Morristown community," Zatorski said.

The sale was first made public in mid-December when a notice was filed with the Morris County Clerk's Office. However, the sale was still in the due diligence phase at the time, and the parties involved were not permitted to comment.

The initial development on 126, 136 South Street was presented to the community as an upscale addition to the downtown, although it met a significant amount of backlash from some residents at the Vail Mansion.

One resident reportedly even hired a lawyer and a planner to oppose the project back in 2021, according to a report from the Morristown Green. Issa Oweis, a resident who lives in a neighborhood that is part of a historic district, claimed that the project was out of place.

Under the new owners, Zatorski said that Atlantic Health, "looks forward to remaining an important part of the health and wellbeing of local residents and the continued growth and support of the local economy.”