Newark, N.J. (October 6, 2020) – NAI James E. Hanson, the largest New Jersey-based full-service independent commercial real estate firm, announces it has negotiated two industrial leases in the Ballantine Industrial Center at 397-447 Ferry Street in Newark, N.J. for 31,359 square feet with One Stop of Newark, LLC, and 27,838 square feet with Prime Building and Maintenance Supply.
NAI James E. Hanson’s industrial team of Russell Verducci, SIOR, and Eric Demmers represented the landlord, Turnbridge Equities, in the transactions. Since late 2019, Verducci and Demmers have served as the exclusive leasing brokers for 726,525 square feet of space at 397-447 Ferry Street within the Ballantine Industrial Center. In less than a year, Verducci and Demmers have helped close nearly 350,000 square feet of leasing transactions at the property.
The Ballantine Industrial Center is well-positioned to capitalize on the strong demand for industrial space in the Ports submarket. The market’s proximity to the tri-state area and easy access to several of the nation’s busiest multimodal logistics facilities including Port Newark/Elizabeth and Newark Liberty International Airport have ensured sustained demand from industrial users despite the broader economic slowdown. According to data from NAI James E. Hanson, the Ports submarket saw the biggest increase across northern and central New Jersey in average asking rents in Q2 2020 compared to the same time period the year prior, increasing by 18.5%. Additionally, the market’s limited deliveries of new space and robust renewal activity have seen its vacancy rate decline by 130 basis points to 2.4% from the same time last year.
“For companies hoping to capitalize on the robust logistics infrastructure found in the New York City area, there is no location better positioned than the Ports industrial submarket,” said Verducci. “However, the market’s maturity and density coupled with tremendous demand have led to a lingering shortage of Class-A industrial space throughout the region.”
Demmers added, “In such a crowded market, properties like the Ballantine Industrial Center continue to stand out to companies searching for the ideal combination of adaptability and location in one of the nation’s most lucrative industrial markets. We are honored to work with Turnbridge Equities to attract premier tenants to this one-of-a-kind property and reinvent this important economic driver for the City.”
Standing at over one million square feet, the Ballantine Industrial Center is ideally suited to attract a wide variety of industrial tenants hoping to find a home or expand their presence in the Ports market. Acquired in 2019 in a joint venture between Turnbridge Equities and institutional investors advised by J.P. Morgan Asset Management, the Ballantine Industrial Center is situated on the site of the former Ballantine Brewery in the Ironbound section of Newark. Upon its closing in 1972, the property was repositioned as a multi-tenanted industrial property which allowed it to remain a valuable economic contributor to Newark well after the brewery departed. However, after years of industrial usage, the property was lacking the features and upkeep that many modern industrial users value.
Upon their acquisition of the Ballantine Industrial Center, Turnbridge and their investment partners immediately began a significant capital improvement program aimed at creating a modern and flexible industrial property that better aligned with the needs of today’s industrial users. Today, the property features over a million square feet of industrial and loft space with 397-447 Ferry Street making up the bulk of the square footage at 726,525 square feet.
Today, the Ballantine Industrial Center boasts industrial and office space in a variety of configurations. Featuring ample drive-ins, 13’ to 28’ ceilings, and brand-new service elevators, the building can meet the needs of a wide range of industrial and office uses.
For more insights on the Ports submarket and a deeper look at the northern New Jersey industrial market, please download NAI James E. Hanson’s Q2 2020 Northern and Central New Jersey Industrial Report, which highlights market trends and key data in the industrial asset class throughout the region.