JLL Arranges Acquisition Financing for Ridgecut Road"s IOS Property at 1200 Springfield Road in Union, NJ

JLL has arranged acquisition financing through Regions Bank for Ridgecut Road"s purchase of 1200 Springfield Road, a five-acre Class A industrial outdoor storage property in Union, New Jersey, the firm announced July 28, 2026.

The property features an 18,500-square-foot maintenance facility and sits within Northern New Jersey"s primary logistics corridor, less than one mile from the Garden State Parkway and Route 22 and approximately two miles from Interstate 78. The site is roughly 15 minutes from the Port of Newark-Elizabeth and falls within a 60-minute drive-time population exceeding 12.7 million people.

Deal Structure and Property Details

The transaction includes a short-term sale-leaseback with the seller, providing immediate cash flow while Ridgecut Road executes a leasing strategy to secure a long-term tenant. The structure positions the acquisition as a value-add play, with the sale-leaseback serving as bridge income rather than a long-duration credit lease. Financial terms of the transaction, including purchase price and loan amount, were not disclosed.

The 18,500-square-foot maintenance facility offers 16-foot clear heights and five drive-in doors. Recent capital improvements to the site include a new roof carrying a 20-year warranty, complete paving throughout the property, upgraded perimeter security fencing with electric gates, enhanced lighting, epoxy flooring within the warehouse, and modernized office interiors with new HVAC systems.

The site is designed to accommodate a broad range of industrial outdoor storage tenant verticals, including trucking, drayage and freight, equipment rental and sales, container and material storage, e-commerce, transportation, fleet service and maintenance, last-mile delivery, and trade contractors spanning electrical, mechanical, HVAC, plumbing, utility, and heavy infrastructure operations.

JLL Team and Lender

The JLL Capital Markets team representing Ridgecut Road included Michael Klein, Max Custer, Nazario Paragano, and Kevin Badger. Regions Bank provided the acquisition loan.

"We continue to see robust lending appetite for well-located industrial outdoor storage assets in Northern New Jersey"s supply-constrained market," Custer said. "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."

Ridgecut Road"s IOS Strategy in New Jersey

Founded in 2021, Ridgecut Road is a vertically integrated real estate investment, management, and development firm focused on industrial assets in New Jersey and New York. The firm operates across two strategies: owning and operating low-coverage industrial outdoor storage and industrial service facility assets, and developing Class A warehouse, distribution, and logistics facilities.

Ridgecut Road"s principals, Eric Shalek and Scott Shalek, are identical twin brothers who grew up in Bergen County, New Jersey, and have collectively financed, developed, or executed more than $3 billion in real estate transactions over their careers. The firm describes its approach as a granular, market-specific investment strategy grounded in real-time supply and demand data within its target New York and New Jersey markets.

The firm positions itself as a specialized operator of Class A low-coverage industrial assets in New Jersey, targeting properties it characterizes as mission-critical to tenants and the broader regional supply chain. Ridgecut"s investment thesis centers on asymmetric risk-return profiles supported by constrained IOS supply and rising demand from credit tenants including third-party logistics providers, national trucking operators, and e-commerce companies.

Northern New Jersey IOS Market Context

The Union, New Jersey location places the property at the intersection of port-driven logistics demand and dense consumer market access. Port Newark-Elizabeth, one of the most active container gateways on the East Coast, generates sustained demand for container storage, truck and trailer parking, and transload-adjacent services — all core IOS tenant categories.

Northern New Jersey"s industrial land constraints have kept available supply of well-located, properly improved Class A IOS sites extremely limited. Competing land uses, including multifamily development and traditional warehouse repositioning, have kept land values elevated and new IOS supply scarce. That dynamic has supported ongoing rent growth and asset appreciation within the IOS and industrial service facility sector, according to Ridgecut Road"s own characterization of the market.

The property"s low building coverage — an 18,500-square-foot structure on a five-acre site — is characteristic of the IOS asset class, which prioritizes paved, secure outdoor yard space over enclosed square footage. This configuration allows operators to serve a wide range of tenants whose primary need is functional outdoor storage and vehicle or equipment staging rather than traditional warehouse space.

JLL Capital Markets operates as a full-service global provider of capital solutions for real estate investors and occupiers, with more than 3,000 specialists in offices across nearly 50 countries.

Sources

JLL Newsroom — JLL Arranges Acquisition Financing for 1200 Springfield Road IOS in Union