The Hampshire Companies continues to expand its self-storage portfolio with the completion of eight self-storage facilities totaling 821,410 square feet across five states from Providence, R.I. to Miami, Fla. throughout the first seven months of 2020.
The Hampshire Companies is one of the nation’s leading self-storage developers, having repositioned or developed 42 self-storage facilities with an aggregate value of over $608 million since 2012. Leveraging a time-tested and data-driven approach to self-storage development, The Hampshire Companies brings modern storage solutions to underserved, high barrier to entry markets across the eastern United States. The firm’s strategic partnerships with two of the nation’s leading self-storage operators, Extra Space and CubeSmart, provide an unmatched competitive edge to delivering institutional-quality assets throughout the I-95 corridor. Currently, The Hampshire Companies has 4 self-storage development projects underway, aggregating $80 million in investments and is targeting another 4 additional projects with an aggregate value of $68 million in the pipeline. Bringing eight new, state-of-the-art self-storage facilities to market to-date in 2020 further demonstrates The Hampshire Companies’ cycle-tested development strategy and platform and reinforces its market leadership position.
“We take a strategic approach to self-storage development that’s backed by our decades of experience in the asset class,” said John Durso, Head of Development for The Hampshire Companies. “Leveraging our team’s tremendous experience, we identify dense, well-located markets throughout the eastern United States that are currently underserved by institutional quality self-storage facilities and then execute development projects to fill this unmet need in those markets. Each of these eight projects demonstrates how our development platform can be replicated and deployed across a variety of market conditions including those as challenging as the COVID-19 environment to deliver best-in-class assets across the northeast.”
The expansion of Hampshire’s self-storage portfolio comes amidst a tumultuous period for the asset class brought on by the COVID-19 pandemic. Prior to the emergence of COVID-19, the self-storage sector had seen tremendous growth due to its stability and a constrained supply of institutional quality facilities across the nation. In recent years, strong market conditions led to the emergence of first-time self-storage developers which resulted in an increased delivery of self-storage facilities throughout the northeast and caused a subsequent downward pressure on rents. The ongoing economic fallout of the pandemic has only made the sector’s underlying economics more complex, requiring an experienced and strategic approach to development.
The Hampshire Companies team recognized that despite the challenges presented to the broader commercial real estate industry as a result of COVID-19, there has been minimal fundamental changes to the underlying drivers that have traditionally fueled the self-storage sector over the long-term and the asset class remains well-positioned for long-term resiliency.
“Strategic site selection and comprehensive due diligence remain vital for successful execution in the current marketplace, especially as the marketplace has become more competitive over the past several years,” added Durso. “Our experience and understanding of the eastern United States’ self-storage market has enabled us to navigate the challenging economic conditions and successfully bring these eight ambitious self-storage projects to completion.”.
Each completed in January, The Hampshire Companies’ Miami, Fla. and Providence, R.I. projects showcase the variety of markets in which the firm can deploy their self-storage development platform. Standing at 83,908 square feet and 675 units, the firm’s Extra Space Storage facility located at 3095 SW 39th Ave, Miami, Fla. is situated just two miles from the University of Miami in the city of Coral Gables. As a market that lacks institutional quality self-storage facilities and boasts demand from both college students and a growing number of new apartment residents in the area, Coral Gables embodies the growth factors of a well-primed self-storage market that meets The Hampshire Companies’ strict site selection criteria.
Similarly, the 110,524-square foot, 863-unit Extra Space Storage facility located at 145 Corliss Street in Providence, R.I. developed in a joint venture partnership between The Hampshire Companies and Harrison Street, brought an in-demand institutional-quality asset to an underserved market with strong underlying demographics. Additionally, the property’s location along Interstate 95 provides enhanced visibility and easy access from a variety of areas.
Joining the Providence and Miami facilities, The Hampshire Companies has also developed four facilities in New Jersey. Leading the way is the firm’s ambitious redevelopment project to turn a former National Guard Armory at 1189 Magnolia Avenue in Elizabeth, N.J. into a state-of-the-art, 100,200-square-foot, 760-unit Extra Space Storage facility that opened for business in January. Featuring a location in one of New Jersey’s largest cities, the redevelopment project preserved the building’s historic façade while reimagining the interior of the building to create an institutional quality self-storage facility. The building was later sold to the United Hampshire US REIT.
Continuing to reinforce the firm’s ability to execute self-storage redevelopment projects is a 102,344-square-foot, 807-unit Extra Space Storage facility that was brought to life last month at a redevelopment site at 11 Franklin Avenue in Belleville, N.J. Joined by a Wawa, a medical office building, and a pharmacy, the building boasts an ideal location in a rapidly growing area of Essex County, one of New Jersey’s densest counties.
In addition to their redevelopment projects, The Hampshire Companies also executed two ground-up development projects in the Garden State. A 94,600-square-foot, 656-unit Extra Space Storage facility located at 900 State Street in Perth Amboy, N.J. and a 120,524-square-foot, 903-unit Extra Space Storage facility located at 141 US-206 in Hillsborough, N.J. both opened in early July.
Rounding out the firm’s 2020 activity to-date are projects in Syracuse, N.Y. and New London, Conn. Breathing new life into a former Sam’s Club at 2649 Erie Boulevard in Syracuse, N.Y., The Hampshire Companies transformed the building into a state-of-the-art, 109,310-square-foot, 882-unit CubeSmart facility. Since opening in April, the building’s location along one of Syracuse’s busiest retail corridors and within miles of Syracuse University and Le Moyne College has provided the company with a strong base of demand from a variety of users.
Another facility that opened in April, The Hampshire Companies’ New London self-storage project served as the company’s first project executed under the Hampshire Christie Qualified Opportunity Zone Fund. Situated at 351 N. Frontage Road in New London, Conn., the 100,000-square-foot, 760-unit CubeSmart facility features a tremendous location along Interstate 95 with over 60,000 daily drivers passing the property. Additionally, the construction of the building has helped stimulate economic activity in the New London Opportunity Zone while providing the growing local community with an in-demand self-storage facility.
About The Hampshire Companies
The Hampshire Companies is a full-service, private real estate firm based in Morristown, New Jersey. The Hampshire Companies is a vibrant, dynamic organization that combines creative vision and superior execution, thereby enabling it to create and enhance value in real estate investments. Additional information on The Hampshire Companies is available online at HampshireRE.com.
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R&J Strategic Communications