STONEMONT’S STRATEGIC EXPANSION - BREAKING DOWN THE NUMBERS

Spotlight on the Deal

• Deal Lead: Ken Lankford — Assistant Vice President, Stonemont

• Leasing Agency (Post-Acquisition):
  – Sean Kelly, KBC Advisors
  – Marc Petrella, KBC Advisors
  – Michael Kimmel, KBC Advisors

Transaction Snapshot

• Facility Size: 67,000 sq ft

• Acquisition Cost: Nearly $26 million

• Price per Sq ft: ~$388

• Location: Logan Township, South Jersey

Why This Deal Matters

This acquisition is more than just another industrial purchase. It represents Stonemont’s first major industrial service facility (ISF) investment in New Jersey, a state where land scarcity and proximity to ports make industrial assets especially valuable.

By paying nearly $388 per square foot—well above national averages for traditional industrial real estate—Stonemont is signaling confidence in the long-term strategic value of well-located ISFs. For context, typical industrial deals in secondary or less supply-constrained markets often trade in the $100–$200 per square foot range.

The Location Advantage

Logan Township sits at a strategic crossroads of I-295, the New Jersey Turnpike, and the Port of Philadelphia. These connections make it an ideal hub for logistics, last-mile delivery, and regional distribution.

For companies operating large vehicle fleets, access to these highways and proximity to major ports means faster turnaround times and reduced transportation costs—key drivers of demand for ISFs and IOS (industrial outdoor storage) facilities in the region.

Stonemont’s bet is that scarcity of zoned land and tenant demand for well-located ISFs will keep valuations high and create durable income streams.

Broader Market Context

The ISF and IOS markets are gaining momentum nationwide as investors seek alternatives to traditional industrial warehouses. With e-commerce continuing to drive supply chain demand and infrastructure around major ports tightening, assets like this Logan Township property have become must-have components in a diversified industrial portfolio.

Stonemont’s move reflects a broader trend: institutional capital is beginning to view ISFs and IOS as a distinct real estate category, one that sits between logistics infrastructure and land banking.

Strategic Takeaways

1. Calculated Entry into New Jersey
   This is Stonemont’s first ISF deal in the state, suggesting they see growth runway in a highly competitive but supply-constrained market.

2. Portfolio Diversification
   The acquisition strengthens Stonemont’s mix of industrial real estate holdings, expanding beyond traditional warehouses into service-oriented facilities.

3. Tenant Appeal
   With KBC Advisors handling leasing, the facility is positioned to attract tenants who value location, connectivity, and the ability to operate efficiently near major logistics hubs.

Risks and Considerations

• Premium Pricing: At nearly $400 per square foot, profitability will depend on achieving strong rental rates or securing tenants with specialized requirements willing to pay above-market rents.

• Competitive Dynamics: As more investors chase ISF/IOS deals in New Jersey, competition could drive cap rates lower, compressing yields.

• Tenant Concentration: The specialized nature of ISFs may limit the pool of qualified tenants, though this risk is often offset by tenant stickiness once leases are secured.

Looking Ahead

This acquisition underscores Stonemont’s confidence in the future of ISFs and IOS as core investment categories. Expect to see the firm pursue additional high-value locations in major logistics corridors—not just in New Jersey, but in other coastal and port-centric markets where infrastructure demand is surging.

With e-commerce volumes still climbing, trucking and logistics companies will continue seeking properties that combine yard space, functional facilities, and excellent connectivity. Stonemont appears to be positioning itself to serve that need on a national scale.

Bottom Line

Stonemont’s $26 million investment in Logan Township is about more than square footage—it’s a bet on location, scarcity, and long-term logistics demand. At $388 per square foot, the numbers reflect a premium—but also a belief that this market will deliver durable returns.

By making its first ISF acquisition in New Jersey, Stonemont is not just entering a new market—it’s staking a claim in one of the most strategic logistics hubs on the East Coast.

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