Turnbridge Equities, in partnership with Long Wharf Capital, on Tuesday said it sold its 738,000-square-foot Newark Distribution Center, formerly known as the Ballantine Brewery complex, in Newark to Hines, a global real estate investment firm, for an undisclosed price.
Located at 397-447 Ferry Street, 400 Ferry Street, and 100 Christie Street in the core port market of Newark and is fully leased to 15 tenants across multiple industries. Two of the three buildings are in the process of installing solar panels on the roofs, and the largest building has received the program allocation award under the New Jersey Community Solar program and is waiting for zoning approvals.
“As Hines’ first industrial acquisition in our east region, this deal demonstrates the firm’s tenacity during this slow period in the market and our commitment to the industrial sector,” Tom Griggs, managing director at Hines stated. “Northern New Jersey has few purchase opportunities and minimal port proximate development parcels, making this high-profile, infill portfolio a prime investment that will benefit from the immediate access to critical multi-modal transportation infrastructure.”
The 19.4-acre portfolio of three infill industrial properties is the former home of the P. Ballantine and Sons Brewing Co., founded in 1840.
Turnbridge was represented by JLL in the transaction.
Turnbridge and Long Wharf acquired the property in May 2021 for $92 million from a joint venture between Turnbridge and institutional investors advised by J.P. Morgan Asset Management.
Upon acquisition, Turnbridge completed the last stages of a $13 million renovation of the Newark Distribution Center, which brought the older complex up to modern logistics standards. As a result of the renovation, the property is occupied by multiple tenants, including Iron Mountain, One Stop Logistics and Worldpac Inc.
In May 2022, Turnbridge and Long Wharf created and sold a subdivided portion of the property at 425 Ferry St. to Storage Blue for $8.25 million.
“We’re excited to complete the sale of the Newark Distribution Center to Hines,” Ryan Nelson, managing principal at Turnbridge Equities, said. “The sale was a great execution by the entire team, especially in the current and challenging market environment. The transaction speaks volumes about the quality of the real estate, the renovations Turnbridge completed and the property’s strong tenancy. We’re very proud, that during our investment, we completed an extensive renovation, brought the property to 100% occupancy, and realized value by selling off portions of the original property for self-storage and multifamily projects. This project had it all.”
“We’re excited to have completed the successful repositioning and sale of this Class A industrial property in one of the strongest markets in the country with our partners at Turnbridge,” Philip Murphy, managing director of acquisitions at Long Wharf, said.
Newark Distribution Center is located immediately adjacent to the second largest port complex in the U.S., Port Newark-Elizabeth, and in close proximity to Newark Liberty International Airport and downtown New York City.
The property, situated within an Opportunity Zone, is among Turnbridge’s extensive portfolio of infill industrial and last-mile logistics centers.