Ridgecut Road Acquires Low Coverage Industrial Asset in I-287 Corridor
BISWIRE/Feb. 15, 2024 — Ridgecut Road partnered with Marcus Partners for their second acquisition together, a 3.63 acre low coverage industrial property with two buildings totaling 13,500 square feet in S. Plainfield, NJ. The site has historically been owned and operated by a publicly traded business-to-business rental company that rents and sells modular buildings, storage containers and portable storage units. The partnership was able to restructure the lease with the existing tenant, a leading national provider of logistics-based environmental solutions focused on the containment of liquid and solid industrial waste. The asset is extremely well-positioned within the industrial submarket of the I-287 corridor given its proximity to Port Newark and the tri-state population center. The off-market transaction was brokered by Isaac Setton at KSR.
“IOS as an asset class continues to mature and institutionalize as a standalone segment of the industrial world. This is a fantastic IOS (industrial outdoor storage) asset to add to our growing NJ low coverage industrial portfolio,” Scott Shalek, Principal and Co-Founder, Ridgecut Road, said. “We look forward to increasing our low coverage industrial (IOS) footprint in New Jersey in addition to our focus of acquiring, entitling, and developing ground up warehouse and distribution facilities across NJ and NY.”
Low Coverage Industrial/IOS
Ridgecut Road's low coverage industrial (IOS) portfolio consists of class A assets located in NJ. Ridgecut is excited to own such high quality assets that are mission critical both to its tenants and the greater supply chain. In 2024, the business will remain focused on this asset class, which will experience continued rent growth and asset appreciation supported by increasing demand from credit tenancy and diminishing supply of these assets.
Warehouse/Distribution Development
Ridgecut Road recently obtained all development approvals for I-84 Orange County Logistics Center a 146,075 sf warehouse and distribution facility in Montgomery, NY featuring 36' clear heights, 16 trailer parks, 31 dock doors, and 83 car parks. Ridgecut is preparing to break ground and commence construction in 2024. The project is well located off of I-84 in the Lower Hudson Valley market which has experienced tremendous rent growth over the last 5 years. Ridgecut is looking forward to working with its construction team to deliver approx. 150k square feet of highly coveted class A warehouse space in a market with growing tenant demand and high barriers to entry. The supply chain is in the early stages of modernizing to meet the needs of the modern consumer and this project will benefit from these trends.
Ridgecut Road Overview
Ridgecut Road is an entrepreneurial real estate investment firm focused in the industrial asset class within New Jersey and New York. Ridgecut's business is bifurcated between two investment strategies (i) acquiring low coverage industrial (IOS/ISF) assets and (ii) developing class A warehouse/distribution and logistics facilities. Ridgecut's current portfolio consists of 4 low coverage industrial properties and 500k sf of active warehouse development in the pipeline.
Ridgecut Road's principal's Eric and Scott Shalek have financed, developed, or executed on over $2.5 billion of real estate transactions over the course of their careers. Eric and Scott are identical twin brothers who grew up in Bergen County, NJ. Ridgecut calls the NYC Metro/Port Newark, NJ home and views this market as its backyard allowing for a granular approach to the industrial market.
Prior to co-founding Ridgecut Road, Eric was a member of the debt investments team at Brookfield Asset Management, a $219 billion AUM real estate fund manager, where he was responsible for the underwriting, origination, and execution of more than 25 transactions with a total capitalization in excess of $2 billion across industrial, office, and multifamily real estate. Prior to Brookfield, Eric was a member of the development team at JDS Development Group and the capital markets team at Hodges Ward Elliott. Eric is a graduate of Northwestern University, where he played on the Men’s Club Hockey Team. Nowadays, he enjoys his yoga practice coupled with insufferable athletic endeavors.
Prior to co-founding Ridgecut Road, Scott was a member of the development team at Valyrian Capital, a middle market developer and owner/operator of residential and mixed-use properties in NY, NJ, and CT. While at Valyrian, he was responsible for overseeing the acquisition, development, and management of single-family, multi-family, residential condominium and mixed-use transactions with a total capitalization in excess of $500 million. Prior to Valyrian, Scott was a member of Tishman Realty Partner's office acquisitions team in New York with a co-GP fund mandate to acquire and redevelop value-added Manhattan office assets and responsible for the operations of Tishman’s existing office holdings. Scott is a graduate of both Northwestern University and NYU where he received his Master's in Real Estate Development from the Schack Institute of Real Estate. Outside of work, Scott enjoys hiking, backpacking, cycling, skiing, and mentoring.
