Ridgecut Road adds South Plainfield IOS site in $37M deal

The basics:

• Ridgecut Road acquires 7.81-acre South Plainfield IOS site
• Property includes 30,069 square feet across two buildings
• Located near I-287 in high-demand industrial corridor
• Deal highlights growing demand for industrial outdoor storage

Ridgecut Road continues to expand its growing IOS portfolio in New Jersey, adding a new property with 7.81 acres of industrial outdoor space in South Plainfield.

NAI James E. Hanson negotiated the $37 million sale of the parcel located at 200 St. Nicholas Ave. The Middlesex County site also includes two buildings totaling 30,069 square feet, according to an April 13 announcement. Separately, Cushman & Wakefield announced arranging joint venture equity and financing for the acquisition.

New York-based Ridgecut Road bought the site from JESCO Equipment. At closing, the seller entered into a short-term license agreement for the property, NAI Hanson said. An Institutional Services Group team comprising Senior Managing Directors Jordan Avanzato and Christopher Todd and Managing Director William Ericksen represented the buyer.

Avanzato described IOS as a “critical component” in the industrial sector. “Especially for logistics and distribution users that rely on well-located, functional sites to support their operation,” he said. “The combination of location, usability, and long-term optionality made this a highly compelling acquisition.”

Onsite perks, ideal location

The fully fenced property features dual access points and robust infrastructure. CushWake described the location as “three turns” from the I-287 on-ramp.

JESCO Equipment is the sole authorized John Deere Construction & Forestry Equipment dealer for New Jersey, New York, Delaware and the Hudson Valley. It also carries equipment from brands including Wirtgen, Hamm, Kleeman and Vogele.

Cushman & Wakefield noted the facility’s location in the Interstate 287 corridor. The firm described the stretch “as one of the densest and most heavily transacted IOS corridors in the state.”

Ridgecut Road Principal Scott Shalek highlighted the area as “the backbone for future industrial service and heavy industrial operators seeking access to critical infrastructure nearby Port Newark, NYC Metro, and the entire Northeast / I-95 corridor.” He also noted the NAI Hanson team will continue to lead leasing efforts.

“The full-service maintenance facilities include 5-ton overhead cranes, generous clear height with oversized drive-in capability across two buildings, heavy power, a wash area and office / conference space offering an HQ environment,” said Ridgecut Road Principal Eric Shalek.

A ‘compelling’ opportunity

A Cushman & Wakefield Equity, Debt & Structured Finance team of Vice Chairman John Alascio, Executive Director TJ Sullivan and Senior Associate Chris Meloni represented Ridgecut Road in the transaction. An unnamed global financial institution provided both the equity and debt financing for the acquisition.

“Ridgecut Road has had tremendous success executing value-add business plans in the Tri-State market over the last few years,” Sullivan said. “200 Saint Nicholas’s rare scale, access, and flexibility, combined with Ridgecut Road’s institutional track record, created a compelling opportunity.”

Infill IOS supply in New Jersey is exceptionally constrained, which continues to fuel competition among buyers looking to scale their portfolios.
— Christopher Todd, senior managing director, NAI James E. Hanson

Added Todd, “Infill IOS supply in New Jersey is exceptionally constrained, which continues to fuel competition among buyers looking to scale their portfolios. We’re pleased to have helped our client secure a highly sought-after asset in one of the most competitive IOS markets nationwide.”

In March, Ridgecut Road added another Middlesex County IOS site, where tenants include FedEx. The real estate investment firm is regionally focused.

IOS has stepped into the spotlight in recent years. Boosters for industrial outdoor storage include increased logistics demands, manufacturing growth and infrastructure investments, CRE Daily notes. According to the publication, vacancy in the niche sits at 2.5%, versus 6.7% for traditional industrial.