CBRE has successfully negotiated the acquisition of 1600 South Second Street, a 14,924-square-foot industrial outdoor storage (IOS) property in Plainfield. The transaction marks a significant addition to the portfolio of the buyer, Ridgecut Road.
The CBRE team, comprised of Mark Silverman, Liam McGregor and Elli Klapper, arranged the acquisition, highlighting the growing demand for “low coverage” industrial assets in core infill markets.
The property is currently occupied by PSE&G, a high-credit utility provider. This long-term occupancy was a primary driver for the acquisition, offering the new owners both immediate income stability and operational relevance within the regional infrastructure.
“The presence of a high-credit utility tenant provided both income stability and operational relevance, which resonated with the team at Ridgecut Road,” said Mark Silverman of CBRE.
Scott Shalek, principal of Ridgecut Road, noted that the asset perfectly aligns with their investment strategy. “Assets leased to essential service providers and industrial groups like PSE&G continue to demonstrate durability across market cycles,” Shalek stated. “We see continued and growing demand for IOS real estate in core infill locations in New Jersey.”
Industrial Outdoor Storage sites have moved to the forefront of industrial real estate investment due to several factors:
- Limited Supply: Zoning barriers and land scarcity make new IOS sites difficult to develop.
- Infrastructure Support: These sites play a critical role in supporting logistics, utility operations, and essential services.
- Yield Potential: Stabilized assets with credit tenancy remain highly competitive, offering attractive yields and near-term upside.
McGregor of CBRE added that the transaction underscores the strength of the New Jersey industrial market. “From positioning through closing, the CBRE team delivered a seamless process and an exceptional result for both buyer and seller,” McGregor said.
