22 Brickyard Road in Cranbury — Courtesy: Deugen Investment Group
By Joshua Burd
Deugen Investment Group has sold a 16.1-acre industrial outdoor storage property in Cranbury, inking the deal less than a year after acquiring it with an eye toward enhancing the site’s zoning.
The buyer, Stonebridge Steel, paid an undisclosed sum for the tract at 22 Brick Yard Road and will occupy it as a user, according to a news release. Deugen, for its part, is marking the completion of a value-add plan that centered on securing municipal approvals to confirm and expand the site’s permitted industrial outdoor storage use, removing what it described as a key layer of execution risk for prospective users and converting the site from a land play into a fully entitled, operationally ready asset.
That attracted a user that was drawn by the asset’s permitted zoning, expanded entitlements and a set of physical improvements rarely found in the IOS market, Deugen said. Chief among them is a 35-ton gantry crane extending the length of the property, which Stonebridge Steel will place directly into service in its operations.
“This outcome reflects the flexibility built into our underwriting and the depth of demand we continue to see for well-located industrial assets along the Turnpike corridor,” said Eric Gormeley, CEO of Deugen Investment Group. “The gantry crane represented a sizable cost advantage for the right user, and we’re proud to have matched the asset to an operator who will put it to work.”
The firm, which announced its acquisition last fall, noted that its primary business plan contemplated a lease of the site but said its underwriting also anticipated the ripple effects of recent acquisition activity in northern New Jersey. Specifically, as institutional owners pushed market rents higher in the north, tenants were displaced southward in a flight to value, landing in markets like Exit 8A along the New Jersey Turnpike and creating significant interest in the Cranbury site from users seeking functional, well-located industrial land with infrastructure already in place.
Deugen said it unlocked the property’s full potential and navigated the entitlement process thanks to its in-house development and construction expertise. Kellen Murphy of Murphy Schiller & Wilkes LLP provided legal counsel in the transaction, while Carly Kilroy of Curran Commercial brokered the sale, which underscores the strength of the IOS sector in Central Jersey as the supply of zoned, improved outdoor storage sites remains constrained, and user demand continues to outpace availability, particularly for properties offering heavy-lift capabilities and immediate operational readiness.
Deugen adds 16-acre industrial outdoor storage property at Exit 8A
