By Joshua Burd
Ridgecut Road has recapitalized two industrial outdoor storage properties in the Interstate 287 corridor, in the latest sign of the subsector’s growing appeal to major investors.
According to the firm, the undisclosed assets include an 11,500-square-foot service facility on 3.9 acres and a pair of maintenance buildings totaling 13,500 square feet on 3.6 acres. Both are less than a mile from I-287, Ridgecut Road said, noting that the low-coverage properties are leased on a long-term basis to a leading technology-enabled equipment rental business and an environmental containment solutions operator with a national footprint.
Jason Lundy of JLL arranged the off-market deal. Ridgecut, which will continue to operate and manage the assets, said the new investment came from one of the largest real estate-focused private equity funds in the U.S.
“Ridgecut is excited to execute our business plan and recapitalize these assets,” said Scott Shalek, a principal at Ridgecut Road. “This marks a major milestone for IOS in New Jersey with institutional capital having recognized the fundamental value in the asset class. Ridgecut Road has differentiated itself as the largest owner/operator of low coverage industrial properties in New Jersey and continues to expand our portfolio of irreplaceable industrial assets.”
In announcing the deal, Ridgecut noted that both properties are just 30 miles from Port Newark-Elizabeth in the high-demand industrial submarket of Middlesex County and offer strong access to a dense consumer base and major distribution routes.
