The Newark Distribution Center at 397-447 Ferry St. in Newark — Courtesy: Turnbridge Equities
By Joshua Burd
Turnbridge Equities and Long Wharf Capital have sold a three-building, 738,000-square-foot industrial complex in Newark for nearly $128 million, the firms announced Tuesday.
According to the sellers, global investment firm Hines purchased the fully leased Newark Distribution Center at 397-447 Ferry St., the longtime home of the former P. Ballantine and Sons Brewing Co. The 19.4-acre property changed hands for $127.5 million, achieving a price that’s 46 percent higher than the value of the previous trade in May 2021, which prompted the completion of a renovation to help attract new tenants.
“We’re excited to complete the sale of the Newark Distribution Center to Hines,” said Ryan Nelson, managing principal at Turnbridge Equities. “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.”
JLL’s Andrew Scandalios, Marc Duvall, Tyler Peck, Jose Cruz, Nicholas Stefans, Jordan Avanzato and Joseph Lembo represented the sellers in the deal with Hines, which comes four years after Turnbridge’s initial investment in the property. At that time, the firm teamed with institutional investors advised by J.P. Morgan Asset Management to launch the renovations at the site.
The firms in May 2021 sold the property to the partnership of Turnbridge and Long Wharf, which completed the $13 million modernization. Last spring, the joint venture created and sold a subdivided portion of the property at 425 Ferry St. to Storage Blue for $8.25 million, while another section is slated for a 280-unit apartment complex.
“We’re very proud that during our investment, we completed an extensive renovation, brought the property to 100 percent occupancy, and realized value by selling off portions of the original property for self-storage and multifamily projects,” Nelson added. “This project had it all.”
JLL’s New Jersey capital markets team also arranged $75.8 million in acquisition financing for Hines, with Senior Managing Director Colby Mueck, Managing Director Matthew Pizzolato and Associate Ryan Carroll sourcing the loan through SMBC.
“Even with the recent volatility in the capital markets, we were able to secure very attractive debt terms for our client that will allow them to execute their business plan,” Pizzolato said.
Current industrial tenants at the complex, which sits within Newark’s Ironbound section, include Iron Mountain, One Stop Logistics and Worldpac Inc. Occupiers benefit from the site’s location two miles from Port Newark-Elizabeth and in a federally designated Opportunity Zone, which qualifies it for special tax incentives.
“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,” said Philip Murphy, managing director of acquisitions at Long Wharf.
In a separate announcement, the buyer noted that the deal marks its entrance to the region’s warehouse and logistics property sector.
“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,” said Tom Griggs, managing director at Hines. “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 multimodal transportation infrastructure.”
