Cushman & Wakefield’s Self-Storage Advisory Group has been exclusively retained to arrange the sale of three self-storage properties at certificate of occupancy in Haverhill, MA, and Lawrence, MA.
This Portfolio presents a unique opportunity to acquire three self-storage facilities within a 10-mile drive of one another. The Portfolio consists of 204,544 rentable square feet of self-storage spread across 2,157 units. The facilities, currently undergoing conversion and expected to be delivered in 2024, will feature modern designs with climate-controlled units, meeting the increasing demand for high-quality self-storage options in their respective trade areas.
The Lincoln facility in Haverhill, MA is situated on 2.67-acres along Lincoln Avenue which has excellent visibility with over 16,300 vehicles passing by the facility each day and easy access given its location within the strip center. The facility is expected to deliver with 70,790 rentable square feet spread across 654 ground floor, climate-controlled units. Current market rental rates are $28.80 annually; however, given the strong supply per capita numbers at 5.05 SF and median household incomes well above the national and state averages, the market is positioned for significant growth over the long term.
The Broadway facility in Lawrence, MA is situated on 1.3 acres along Broadway which has excellent visibility with over 22,000 vehicles passing by the facility each day as well as visibility from the Lawrence Manchester Rail Corridor. The facility is expected to deliver with 93,614 rentable square feet spread across 7 floors and 1,070 climate-controlled units. Current market rental rates are $21.92 annually; however, given the strong supply per capita numbers at 5.90 SF and excellent trade area demographics, there is significant room for organic market rent growth as new supply absorbs.
The River facility in Haverhill, MA is situated on 0.74 acres along River Street which has excellent visibility with over 17,000 vehicles passing by the facility each day. The facility is expected to deliver with 40,140 rentable square feet spread across 5 floors and 433 climate-controlled units. Current market rental rates are $22.39 annually. This store is optimally sized for driving rent growth, especially when factoring in under 5.5 SF per capita and median household incomes in excess of $78,000.
Massachusetts is experiencing strong economic indicators that reflect its robust economic health. As of the second quarter of 2024, the state’s real gross domestic product (GDP) grew at an annualized rate of 3.3%, outpacing the national GDP growth of 2.8%. The unemployment rate remains low at 2.5%, underscoring a tight labor market, particularly in the technology, healthcare, and professional services sectors. Additionally, the state’s leading industries, such as biotechnology, finance, and education, continue to drive economic expansion. Massachusetts also benefits from a growing population and increasing household incomes, which further support consumer spending and economic resilience.
The Portfolio is an ideal opportunity for investors seeking to enter or expand their footprint in storage in Massachusetts. The assets are expected to stabilize with over $4.3 million of NOI at $28.45 projected in-place rents. The Portfolio’s strategic locations and modern design make it a promising investment in a highly stable market, allowing investors to achieve opportunistic returns.
