115 St. Nicholas Ave. and 115 Skyline Drive — Courtesy: NAI James E. Hanson
By Joshua Burd
An investment group has acquired a nearly nine-acre industrial outdoor storage site in South Plainfield for $33.25 million, in a newly announced deal by NAI James E. Hanson.
The brokerage team represented the buyers, Oliver Street Capital and Bain Capital Real Estate, in the transaction with Trans American Trucking Services. They noted that the property at 115 St. Nicholas Ave. and 115 Skyline Drive, which spans 8.84 acres, is just off Exit 5 on Interstate 287 and allows users to be minutes from the New Jersey Turnpike and Garden State Parkway, while citing South Plainfield’s favorable zoning as a key feature for industrial outdoor storage investment.
NAI Hanson’s Scott Perkins, Christopher Todd and William Ericksen completed the off-market trade.
“Our institutional partners trust our team because of our commitment to identifying the precise properties that align with their investment strategies,” Ericksen said. “Despite increasing competition for IOS assets in the state, we successfully pinpointed 115 St. Nicholas Avenue/115 Skyline Avenue as the perfect acquisition for Oliver Street Capital and Bain Capital Real Estate and worked tirelessly to bring this deal across the finish line.”
Based in Boston, Oliver Street Capital is a value-based real estate investment manager focused on acquiring, financing and managing high-quality industrial real estate assets in supply-constrained markets along the East Coast, NAI Hanson said. The firm since 2014 has acquired more than 50 buildings spanning over 5 million square feet across the Northeast, while the South Plainfield deal is the firm’s largest industrial outdoor storage acquisition in New Jersey.
“The off-market acquisition of 115 St. Nicholas Ave and 115 Skyline Dr in South Plainfield, NJ presented a unique opportunity to acquire two very functional and rare IOS sites along the I-287 corridor,” said Mitch Arthur, vice president of investments at Oliver Street Capital. “Truck terminals and maintenance facilities rarely come available for lease, and even rarer yet, for sale. This investment is a continuation of Oliver Street Capital’s thesis to acquire differentiated, rare and functional assets in infill locations.”
Bain Capital Real Estate, a subsidiary of Bain Capital, focuses on executing value-add strategies to create high-quality assets in difficult-to-access sectors at the nexus of emerging economic and demographic trends, the brokers said. The firm launched in 2010.
“Over the last several years, institutional investors have increasingly identified IOS properties as ideal portfolio diversification targets,” Todd added. “As demand for these properties grows across New Jersey, it has become critical, especially for out-of-state investors, to leverage the local market knowledge of experienced brokers to find and close off-market deals in the space.”