Open Industrial, Heitman Buy New Jersey IOS Facility for Hawaii Account

The joint venture acquired the 6.5-acre property from Ridgecut Road, Brennan and Global Gate in a transaction arranged by JLL Capital Markets.

By the Family Office Real Estate Daily Desk·Monday, October 26, 2026·2 min read

Editorial summary of reporting byjll.com Our editorial standards →

The answer · checked against jll.com

Who bought the 700 Jernee Mill Road industrial outdoor storage facility in New Jersey and what were the deal terms?

JLL Capital Markets arranged the sale of 700 Jernee Mill Road, a Class A industrial outdoor storage facility comprising 6.5 usable acres and 28,600 square feet of maintenance and office space in New Jersey's Exit 9 submarket. A newly formed joint venture between Open Industrial and Heitman acquired the fully leased asset on behalf of a separately managed account with the State of Hawaii. The sellers were a joint venture between Ridgecut Road, Brennan Investment Group, and Global Gate.

Key facts

JLL Capital Markets arranged the sale of 700 Jernee Mill Road, a Class A IOS facility totalling 6.5 usable acres and 28,600 square feet of maintenance and office space in New Jersey's Exit 9 submarket.
The Open Industrial and Heitman joint venture acquired 700 Jernee Mill Road on behalf of a separately managed account with the State of Hawaii, according to the JLL announcement.
The sellers of 700 Jernee Mill Road were a joint venture between Ridgecut Road, Brennan Investment Group, and Global Gate.
700 Jernee Mill Road is 100% leased on a long-term basis to a global leader in temporary power generation and temperature control solutions, according to the JLL announcement.
The JLL Capital Markets team on the transaction was led by Managing Directors Jason Lundy and Nicholas Stefans, along with Senior Analyst Luke Ceccoli, with Vice Chairman Dean Brody also assisting.
Scott Shalek, Principal and co-Founder at Ridgecut Road, said the transaction delivered outsized risk-adjusted yield for investors and represented a successfully completed business plan for Ridgecut.

Open Industrial, Heitman Buy New Jersey IOS Facility for Hawaii Account — Image: editorial illustration · Story sourced from jll.com

A newly formed joint venture between Open Industrial and Heitman acquired 700 Jernee Mill Road, a Class A industrial outdoor storage facility in central New Jersey, on behalf of a separately managed account with the State of Hawaii. JLL Capital Markets arranged the sale from a joint venture between Ridgecut Road, Brennan Investment Group and Global Gate.

The property comprises 6.5 usable acres and 28,600 square feet of maintenance and office space. Constructed in 1988, the facility features 15 drive-in doors, clear heights ranging from 24 to 28 feet, and 2,000 amps of power. The asset is 100 per cent leased on a long-term basis to a global leader in temporary power generation and temperature control solutions.

Recent capital improvements include office renovations, electrical and power upgrades, fencing and landscaping enhancements, additional grade-level loading and the installation of a wash bay. The seller group completed these upgrades to improve the property's operational functionality.

The facility is located at Exit 9 in central New Jersey's infill industrial market. The site offers direct access to U.S. Route 9, U.S. Route 18, Interstate 287 and the New Jersey Turnpike. It is strategically positioned near the Port of New York and New Jersey, Newark Liberty International Airport and major population centres throughout the Northeast Corridor.

The JLL Capital Markets team was led by Managing Directors Jason Lundy and Nicholas Stefans, along with Senior Analyst Luke Ceccoli. Dean Brody, Vice Chairman of JLL's Leasing Advisory team, also assisted in the transaction.

Headline deal value is the part of the trade that prints; the structure is the part that decides whether anyone gets paid, family office advisor Jaf Glazer has observed.

"700 Jernee Mill Road offered investors the opportunity to acquire a highly functional industrial outdoor storage asset benefitting from globally recognized tenancy and Class A specifications in a market where new supply is exceptionally difficult to create," Stefans said. "As capital continues to flow into alternatives, including core and core+, we anticipate IOS and low-coverage industrial assets to benefit from an increased allocation to the asset class," Lundy said.

"It was a pleasure to work through this transaction with the JLL Capital Markets team who provided a steady hand to navigate the transaction when complexities arose – Lundy and Stefans possess a unique understanding of the IOS sector," said Scott Shalek, Principal and co-Founder at Ridgecut Road. "Ridgecut is excited to have successfully round tripped another business plan. This was a fantastic outcome and testament to the team's ability to identify and execute — delivering outsized risk-adjusted yield for our investors as a vertically integrated and leading IOS operator."

The Deployment Angle

Family Office Real Estate Daily Desk · our analysis, not the source's

The separately managed account structure signals a route for family offices with $50 million or more to allocate. Hawaii's use of a bespoke vehicle with Open Industrial and Heitman suggests the deal was too small or too specialised for a commingled fund but large enough to justify the governance overhead of a separate account. Families seeking exposure to industrial outdoor storage should ask whether their existing logistics managers can accommodate a programmatic sleeve for IOS assets or whether this requires a stand-alone partnership with a specialist operator.

The business plan the seller executed is instructive. Ridgecut Road and its partners acquired the asset, implemented capital improvements including electrical upgrades and a wash bay, and exited to a core buyer on a stabilised, long-term lease. The gross return is not disclosed, but Shalek's reference to outsized risk-adjusted yield suggests the group achieved a value-add return profile on what is now a core asset. Families considering co-GP structures with regional value-add sponsors should underwrite similar repositioning plans and test whether the sponsor has demonstrated an ability to exit to institutional capital at compressed cap rates.

The buyer's willingness to acquire a single 6.5-acre facility on behalf of a state pension suggests that scale is less of a constraint in IOS than in traditional warehouse product. A family office could build a programmatic joint venture with an operator like Open Industrial to acquire sub-institutional IOS assets that larger funds will not pursue but that can still deliver mid-teens unlevered returns if underwritten correctly. The key is ensuring the operator has fleet-maintenance and outdoor-storage tenant relationships that produce long-term leases with investment-grade or near-investment-grade credit.

Families should price in supply constraints when underwriting infill IOS in the Northeast Corridor. Stefans noted that new supply is exceptionally difficult to create in this market. That suggests replacement-cost underwriting may be less relevant than replacement-probability underwriting. If a tenant vacates, how quickly can the site be re-tenanted to another fleet operator or equipment servicer, and what is the probability that a competing facility is entitled and delivered within three years. The answer to the second question in coastal New Jersey is likely close to zero, which supports residual-value assumptions that would not hold in exurban Sun Belt markets.

Questions this story answers

01Who bought 700 Jernee Mill Road in New Jersey and on whose behalf?

A newly formed joint venture between Open Industrial and Heitman acquired 700 Jernee Mill Road. The purchase was made on behalf of a separately managed account with the State of Hawaii, according to the JLL Capital Markets announcement dated October 21, 2026.

02What are the physical specifications of 700 Jernee Mill Road?

700 Jernee Mill Road comprises 6.5 usable acres and 28,600 square feet of maintenance and office space. The facility includes 15 drive-in doors, clear heights ranging from 24 to 28 feet, and 2,000 amps of power. The property was constructed in 1988, according to the JLL announcement.

03Who sold the 700 Jernee Mill Road IOS asset and what was the brokerage arrangement?

The sellers were a joint venture between Ridgecut Road, Brennan Investment Group, and Global Gate. JLL Capital Markets represented the seller and also procured the buyer. The JLL team was led by Managing Directors Jason Lundy and Nicholas Stefans, along with Senior Analyst Luke Ceccoli.

04What is the tenant profile at 700 Jernee Mill Road?

700 Jernee Mill Road is 100% leased on a long-term basis to a global leader in temporary power generation and temperature control solutions, according to the JLL Capital Markets announcement. Nicholas Stefans of JLL described the tenancy as globally recognized.

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Original reporting

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