Industrial outdoor storage (IOS) continues to prove its weight in gold across Northern New Jersey’s supply-constrained logistics market. JLL Capital Markets announced today that it has successfully arranged acquisition financing for 1200 Springfield Road, a prime five-acre Class A IOS property anchored by an 18,500-square-foot maintenance facility in Union.
JLL represented the borrower, Ridgecut Road, in securing the loan through a regional bank. The acquisition includes a short-term sale-leaseback structure, providing immediate cash flow while the sponsor launches its leasing strategy to secure a long-term tenant.
Positioned less than a mile from the Garden State Parkway and Route 22—and just two minutes from Interstate 78—the property sits right at the heart of Northern New Jersey’s premier distribution network. Furthermore, the site is located a mere 15 minutes from the Port of Newark-Elizabeth, servicing a massive 60-minute drive-time population exceeding 12.7 million people.
The roughly five-acre property has undergone comprehensive capital improvements, featuring:
- A brand-new roof backed by a 20-year warranty
- Complete site-wide paving and upgraded security perimeter fencing with motorized electric gates
- Enhanced property-wide lighting and epoxy warehouse flooring
- Modernized office interiors equipped with brand-new HVAC systems
- An 18,500-square-foot maintenance facility boasting 16-foot clear heights and five drive-in doors
Due to these high-end specifications, the site is uniquely outfitted to accommodate a wide spectrum of industrial verticals—including trucking, drayage, freight, equipment rental, container storage, e-commerce, fleet maintenance, and heavy infrastructure contracting trades.
“We continue to see robust lending appetite for well-located industrial outdoor storage assets in Northern New Jersey’s supply-constrained market,” said Max Custer, who led the JLL Capital Markets debt advisory team alongside Michael Klein, Nazario Paragano, and Kevin Badger. “The asset class serves a critical part of the regional logistics infrastructure, and lenders recognize the strong fundamentals driving demand from a diverse tenant pool.”
The transaction highlights the continued high-stakes momentum for low-coverage industrial properties throughout the Garden State, as institutional investors compete for scarce, highly accessible logistics real estate.
