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A 10-acre site featuring industrial outdoor storage is available for lease in Middlesex County following its sale.

JLL Capital Markets announced Aug. 31 it arranged $23.5 million in acquisition financing and joint venture equity for the purchase of 700 Jernee Mill Road in Sayreville, which boasts 6.5 usable acres and a 28,500-square-foot warehouse.

The global real estate services company represented Ridgecut Road and its partner, Brennan Investment Group, to secure the acquisition loan through an undisclosed regional bank. The JLL Capital Markets Debt Advisory team was led by Senior Managing Director Michael Klein, Managing Director Matthew Pizzolato and Analyst Benjamin Morgenthal.

“The Ridgecut Road team did a tremendous job sourcing this off-market transaction and negotiating an attractive sale-leaseback, which resulted in significant interest from both equity investors and lenders,” Pizzolato said.

The sale-leaseback was negotiated with the property’s seller and current occupant, American Truck & Trailer, which will continue at the industrial site for six months from closing, which occurred two weeks ago. In the meantime, JLL Executive Managing Director Dean Brody, who specializes in leasing low coverage industrial, will begin his campaign marketing the property for lease.

Located 35 minutes from the Port of Newark, the site offers direct access to Routes 9 and 18, as well as Interstates 95 and 287.

The warehouse at the property features clear heights ranging from 24 feet to 28 feet, 14 drive-in doors and the more than 6 acres of space for truck parking and IOS. According to JLL, the low coverage property is “highly coveted,” offering tenants scale, “which is difficult to find in a supply diminishing market.”

In its New Jersey Industrial Insight report for the second quarter of 2023, JLL called out a “significant slowdown” in construction starts, amid uncertainty around interest rates and entitlement challenges. “We expect this capital environment to continue to restrict development, and as a result total under construction volumes are forecasted to fall below 20 million s.f. by year-end,” according to the report.

That should serve to amplify appeal for existing properties, like 700 Jernee Mill Road.