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The basics:

• JLL secures financing for Extra Space Hillsborough 709-unit self-storage project in Somerset County
• Additional deals include 854-unit facility in South River, Middlesex County
• And, Passaic County‘s High Mountain Promenade mixed-use development with self-storage
• Portfolio reflects continued lender demand in undersupplied New Jersey self-storage markets

A project to add a 709-unit self-storage development along Route 206 in Hillsborough has secured construction financing.

JLL Capital Markets announced April 20 arranging the five-year construction and bridge loan for Extra Space Hillsborough on behalf of Provident Bank. The team worked for the borrower, Shadowbrook Capital. Additional terms were not disclosed.

The transaction marks the latest from JLL’s capital solutions team in the local self-storage market. It builds on funding for two other New Jersey projects announced this year — both also secured through local lenders.

Somerset County

In Hillsborough, the project at 35 Bedle St. offers frontage and accessibility along Route 206.

Set for completion in 2027, the single-story building will offer 76,119 rentable square feet in a temperature-controlled facility. Extra Space Storage will handle the lease-up and day-to-day operations, JLL said.

Senior Managing Director Michael Klein, Nazario Paragano and Capital Markets Analyst Michael Donohoe led the JLL Capital Markets team representing the borrower.

“Shadowbrook Capital presented a compelling opportunity by identifying a clear need for high-quality self-storage in this underserved market” said Paragano. “The combination of a premier sponsor, a strategic location … and robust market fundamentals generated significant interest from the lending community.”

Hillsborough is home to nearly 45,000 residents. World Population review puts the municipality’s growth rate at 6.67% annually. Since the most-recent 2020 Census, the local population has increased by more than 33%, according to the digital platform.

Middlesex County

In February, JLL announced securing construction financing for developer The CrownPoint Group through Bayonne-based BCB Bank. The undisclosed funding amount will go toward an 854-unit self-storage facility in South River.

The Middlesex County development will total 105,487 square feet. The climate-controlled building will offer units averaging 90.7 square feet each. Project partners expect to deliver the three-story building in Q1 2027, JLL said.

The work will transform a 1.97-acre site located at 696 Old Bridge Turnpike. The former used car dealership property sits 1 mile from Interstate 95 and 4 miles from downtown New Brunswick.

JLL put the surrounding population at 100,580 residents within a 3 mile radius. It also noted the Central Jersey space is undersupplied when it comes to self storage, with just 3.96 square feet per person. The average comes in about double that, at 6.32 square feet per person.

Along with Klein, Senior Managing Director Jon Mikula and Analyst Kevin Badger represented the borrower.

Parsippany-based The CrownPoint Group is a privately held development firm focused on self-storage, multifamily and mixed-use projects in mass transit and high-barrier-to-entry locations. Since 2013, the company says it has developed projects totaling more than $3.4 billion of assets across 12.5 million square feet.

“The self-storage industry continues to thrive, building on strong fundamentals in both public and private sectors,” said Mikula. “This opportunity generated a lot of interest given its location in an extremely undersupplied market and it’s prime location in Central New Jersey, just 35 minutes outside of Manhattan.”

Passaic County

Construction financing secured by JLL in Passaic County will help kickstart work on a new mixed-use development, High Mountain Promenade, with a self-storage facility leading phase 1.

At the end of January, JLL detailed a loan arranged on behalf of a joint venture borrower comprising Tulfra Real Estate and The Hampshire Cos. for the North Haledon project. Hamilton-based First Bank provided the funding. Additional financial terms were not disclosed.

According to the announcement, loan proceeds will primarily go toward building the 74,715-square-foot self-storage facility. A portion will also go toward future development, which will include 90 apartments and 4,400 square feet of retail with a drive thru, JLL said.

The three-story storage facility will offer 55,394 rentable square feet and climate-controlled units. Additionally, it will feature two floors of loading ability.

Public Storage will handle the lease-up and management.

Upon completion, JLL says the development at 987 Belmont Ave. will emerge as the only self-storage facility serving North Haledon.

Positioned at the center of Passaic County, the spot offers access to dense populations centers, such as Wayne and William Paterson University. Within a 3-mile radius, the facility will serve an estimated 151,308 residents, as of 2025. Additionally, JLL noted strong market fundamentals: with 49% of housing units within that 3-mile radius renter occupied.

Director Ryan Carroll and Analyst Michael Donohoe joined Klein and Mikula on this deal.

“Tulfra and Hampshire excel at identifying prime development sites like High Mountain Promenade,” said Carroll. “This strategic location offers high rental occupancy with limited existing supply.

The competitive interest from multiple lenders, with First Bank providing the most favorable terms, reflects both the market opportunity and our client’s proven development experience.
— Ryan Carroll, director, JLL

“The competitive interest from multiple lenders, with First Bank providing the most favorable terms, reflects both the market opportunity and our client’s proven development experience.”

Building up

In its February report, Yardi Matrix noted persistent development activity, as seen here, helps build optimism into the nationwide self-storage sector outlook.

As construction starts increased in the second half of 2025, the under-construction pipeline increased to close Q4 2025. That translated to increased completion projections in the 2026 (up 6%) as well as 2027 (up 4.8%)  forecasts. Meanwhile the forecast for the later years (2028-30) was increased by approximately 10%–15%.