New Jersey’s tight availability of industrial outdoor storage (IOS) space continues to drive demand, with recent activity, especially in Middlesex County.

Leading a variety of recent transactions in the IOS space, NAI James E. Hanson negotiated the $33.25 million sale of an 8.84-acre outdoor storage site in Middlesex County.

The Jan. 21 announcement from the Teterboro-based full-service independent commercial real estate firm followed in-state activity announced by Realterm as well as CBRE.

Oliver Street/Bain Capital

Located at 115 St. Nicholas Ave./115 Skyline Drive in South Plainfield, NAI James E. Hanson Managing Director Christopher Todd and Associate Vice President William Ericksen represented the buyers, Oliver Street Capital and Bain Capital Real Estate, in the off-market transaction with Trans American Trucking Services.

Located just off Exit 5 on Interstate 287, the property offers accessibility to New Jersey Turnpike and Garden State Parkway.

NAI Hanson also highlighted favorable zoning in South Plainfield as making the property an “ideal” IOS investment. According to the firm, the purchase marks Oliver Street Capital’s largest IOS acquisition in New Jersey.

Oliver Street Capital Vice President of Investments Mitch Arthur described the deal as “a unique opportunity to acquire two very functional and rare IOS sites along the I-287 Corridor.

“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,” Arthur said.

[I]nstitutional investors have increasingly identified IOS properties as ideal portfolio diversification targets.

“Our institutional partners trust our team because of our commitment to identifying the precise properties that align with their investment strategies,” said Ericksen.

Todd continued, “Over the last several years, institutional investors have increasingly identified IOS properties as ideal portfolio diversification targets. 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.”

Realterm

Maryland-based Realterm also expanded its presence in the Garden State, acquiring a 13-property IOS truck terminal portfolio that includes space in New Jersey.

The independent global investment manager with a focus on transportation, announced its purchase of the 631,604-square-foot, 131-acre package Jan. 9. It did not disclose financial terms.

According to Realterm, the portfolio is 97% leased to 10 tenants. It consists mostly of IOS truck terminals and IOS maintenance facilities in supply-constrained markets, the company said.

Nick Murphy and Brian Budnick of Eastdil Secured facilitated the transaction and represented the seller, Realterm said.

“The portfolio consists of functional and well-located assets that provide utility to supply chain and logistics users,” commented Realterm Managing Director and Senior Fund Manager Stephen Panos. “The acquisition furthers our investment strategy of owning and operating transportation-advantaged assets in key freight markets throughout the United States.”

Beyond New Jersey, the acquired properties are located in primary logistics markets, such as Dallas, Chicago, the Inland Empire, the Bay Area, Seattle and Orlando. Realterm declined to comment on any details specific to individual properties within the portfolio.

“The portfolio is a rare opportunity to acquire, at scale, a collection of transportation-advantaged IOS truck terminal assets in key markets,” added Ben Andreycak, vice president, Investments at Realterm.

Dalfen/Centerbridge

In another off-market deal announced late in 2024, Dalfen Industrial and funds advised by affiliates of Centerbridge Partners LP also acquired space in Middlesex County.

CBRE arranged the transaction for 83 Gross Ave. in Edison. The 4,500-square-foot industrial property sits on 1.87 acres of land. The firm did not disclose financial terms.

According to the commercial real estate services and investment firm, Dalfen and Centerbridge will use the site for industrial outdoor storage. CBRE drew attention to substantial expansion in the segment in recent years. The buyers also added an in-state IOS sites in August.

Featuring a functional and vacant industrial building, the site offers proximity to the Turnpike and I-287.

The CBRE team of First Vice President Mark Silverman, Associate Liam McGregor and Executive Vice President Elli Klapper represented Texas-based Dalfen Industrial in direct negations with the seller.

“This property presented our client with a unique and rare opportunity to acquire an off-market, highly sought-after IOS asset situated in one of the most dynamic and active industrial markets in the Tri-State area,” said Silverman. “This strategic acquisition not only enhances Dalfen’s portfolio, but also positions the company for significant growth in a thriving sector.”