Work has begun on the conversion of a 70,000-square-foot portion of Destination Maternity Corp.'s former headquarters warehouse at Fifth and Spring Garden Streets into Yards Brewing Co.'s new brewery, event space and tasting room, which is on track to open before the end of the year.

Construction started after Yards closed on an $8.5 million loan from M&T Bank Corp., the brewer's chief operating officer, Trevor Pritchett, said Friday. Other financing is coming from city and state sources, he said.

Yards is moving from its current 38,000-square-foot brewery near the Delaware River at Poplar Street. The additional space at the new location will allow the brewer to boost output and add a canning line to the operation.

The project is expected to cost $19 million, with $6 million spent on construction and $13 million on new equipment, Pritchett said.

The new space should open between October and December, Yards said.