I think you're right in assuming there is a family connection somewhere back. Reed doesn't seem to be a common surname, so I wonder if somewhere back there was a garrison wife with the maiden name of Reed. It was tradition to name a child with the mothers maiden name.
Sometimes it's used as a middle name.
Do you know his wife's maiden? I ask because mid-1700's, alot of the NJ folks ended up in VA, and from there on to either IL or OH.
I have never heard of Reed, but I will keep my eyes open for you.
I know the HANDS lived in CAPE MAY NJ from 1690. They met up with the GARRETTSON/GARRISON's somewhere along the way. I know they spread out through the state. Some were living in Rahway, county unknown to me, mid 1700's.
I would get a map, and check out some counties for the names.