Former Ballantine Brewery in Newark hits 100% occupancy

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A new lease extension at the Ballantine Industrial Center in Newark brings the former brewery site to full occupancy.

NAI James E. Hanson secured 21,001 square feet of industrial space at 397-447 Ferry St. for tenant Eli Fashion Inc., the firm announced Sept. 27.

Vice Presidents Russell Verducci and Eric Demmers represented the tenant and the landlord, Turnbridge Equities, in the transaction. The pair has served as exclusive leasing brokers for the 726,525-square-foot complex since late 2019.

“Northern New Jersey’s industrial real estate market is as competitive as any market in the nation,” Verducci said in a statement. “Within a market like that, landlords are in a strong position to benefit from the rising rents in the area. With that said, it’s important that landlords don’t chase the highest possible number at the expense of losing the stability brought by an in-place tenant. We’re happy to have found a solution that benefited both of our clients and to cap off our successful leasing assignment at this historic property.”

The deal follows an extension negotiated recently by Avison Young that also took rising rents in the industrial space into account. For the second quarter of this year, the Newark submarket was the tightest in the state, with asking rents up 23% quarter over quarter and 87% year over year to $30.85 per-square-foot.

The 16-acre Ballantine Industrial Center is located in Newark’s Ironbound. Highly accessible, it offers proximity to Routes 9, 21 and 280; Interstate 78; the New Jersey Turnpike; Manhattan; and the ports.

Eli Fashion is a fabric, garment, shoe, hat and leather accessory alteration, inspection and repair company. According to NAI Hanson, the enterprise, which also has a location on the West Coast, aims to build upon its existing space to expand its reach in the Tri-State area.

A joint venture of Turnbridge and institutional investors advised by J.P. Morgan Asset Management acquired the Ballantine property in 2019 and subsequently undertook a $10 million renovation. Improvements included roof and window replacement, select demolition of abandoned structures, yard and loading area repaving, and extensive aesthetic upgrades. The site also now features Class A professional management.

Filling the Ballantine roster

• Nextstop leases 6K square feet in Newark
• E! Entertainment founder shaking up self-storage
• NAI Hanson secures 20K+ square feet in leases