Highlighting the surging investor demand for specialized industrial outdoor storage (IOS) assets, JLL Capital Markets said it successfully arranged the sale of 700 Jernee Mill Road, a fully leased, core low-coverage facility situated within New Jersey’s coveted Exit 9 submarket.
The property was acquired by a newly formed joint venture between Open Industrial and Heitman—acting on behalf of a separately managed account with the State of Hawaii—from a selling partnership comprised of Ridgecut Road, Brennan Investment Group, and Global Gate.
Spanning 6.5 usable acres, the Class A property features a 28,600-square-foot building equipped with maintenance and office space, 15 drive-in doors, 24-to-28-foot clear heights, and a robust 2,000 amps of electrical power. The site is 100% leased on a long-term basis to a global leader in temporary power generation and temperature control solutions.
Prior to the sale, the ownership group executed significant value-add capital improvements, including office renovations, electrical and power upgrades, added grade-level loading, security fencing, landscaping enhancements, and the installation of a new wash bay.
Strategically positioned in central New Jersey’s infill industrial corridor, the property offers immediate connectivity to the New Jersey Turnpike (Exit 9), U.S. Route 9, U.S. Route 18, and Interstate 287. Its location provides seamless access to the Port of New York and New Jersey, Newark Liberty International Airport, and major regional population centers across the Northeast Corridor.
“700 Jernee Mill Road offered investors the opportunity to acquire a highly functional industrial outdoor storage asset benefitting from globally recognized tenancy and Class A specifications in a market where new supply is exceptionally difficult to create,” Nicholas Stefans, managing director at JLL, said.
Jason Lundy, Managing Director at JLL, added, “As capital continues to flow into alternatives, including core and core+, we anticipate IOS and low-coverage industrial assets to benefit from an increased allocation to the asset class.”
For the sellers, the transaction marks the successful execution and completion of a targeted business plan. “Ridgecut is excited to have successfully round tripped another business plan. This was a fantastic outcome and testament to the team’s ability to identify and execute — delivering outsized risk-adjusted yield for our investors as a vertically integrated and leading IOS operator,” Scott Shalek, Principal and Co-Founder at Ridgecut Road, said.
The JLL Capital Markets transaction team was led by Managing Directors Jason Lundy and Nicholas Stefans, alongside Senior Analyst Luke Ceccoli, with additional assistance from Dean Brody, Vice Chairman of JLL’s Leasing Advisory team.
