Newark Distribution Center
Update
01/24/23
Newark Industrial Complex Trades for $127.5M
A 3-building, industrial warehouse complex, located in the Ironbound neighborhood of Newark, New Jersey, has just been sold for $127.5 million. Know as "Newark Distribution Center", it was acquired by Hines from the previous owners, Turnbridge Equities and Long Wharf Capital, in a deal brokered by JLL.
Once operated by the Ballantine Brewery, the buildings are now used by 15 different tenants for warehousing and distribution operations. The 738,000-square foot, 19.4-acre complex is marketed both as "Newark Distribution Center", and "Ballentine Industrial Center".
The main building, addressed as 397-447 Ferry Street, is a 635,260-square-foot structure. It was originally constructed in the early 1900s as part of the brewery's manufacturing plant but was converted to warehousing space in 1972 after the facility shut its doors.
The building was later renovated in 2019, and it currently features 24-foot interior ceiling clearances, multiple separated units for tenants, and various loading docks found all around the structure.
The second largest building in the complex is located just across the road at 400 Ferry Street.
Built sometime in the mid-century, it offers 55,676 square feet of leasable space and 4-loading docks.
The third and smallest building in the complex is located at 100 Christie Street.
Built-in 1940, it features 25,000 square feet of leasable space, 4-loading docks, and a small yard for trailer parking.
Turnbridge and Long Wharf purchased Newark Distribution Center as a joint venture in 2021 for $92 million. The companies will net a significant profit from this sale, in what seems to have been a very smart play, since New Jersey's industrial market (one of the hottest in the country) appears to have peaked recently. On the opposite side of the table, Hines will benefit from this deal as well, because the complex is fully leased out already, and it will serve to boost their portfolio of close-to-port industrial properties.
