Joseph Mendola, SVP of NAI Norwood
Group in Bedford NH, has brokered the sale of 495 Storage at 545 Clark Road in
Tewksbury, MA. NAI Norwood Group represented the sellers, 495 Storage, LLC in
this transaction and assisted the buyer. The purchase price is
$11.1 million. Mendola is the Argus Self Storage National Sales Network
representative for the Northern New England region. Argus is a national sales
network of brokers who specialize in the brokerage of self-storage facilities.
There are Argus brokers in the 40 major real estate markets in the country.
Argus is the largest listing organization of self- storage facilities in the
country.
The sellers built a state of the art
90,000+/- SF climate controlled facility on three floors. The property has good
visibility to I-495 at the Route 38 exit in Tewksbury, MA. It is also
strategically located across from a community shopping center with Market
Basket as an anchor tenant.
This acquisition of 495 Storage fits
nicely into the buyer's plan to increase its presence in the New England
self-storage market. 495 Storage is the fifth acquisition in the Greater Boston
Market. Other acquisitions include facilities in Brighton, Boston, Stoneham and
Medford Massachusetts. It also has facilities under management in Southern New
Hampshire.
The self-storage industry has evolved
over the last 20 years in New England into a service that is in high demand.
This makes the self-storage asset a first class investment in real estate. The
self-storage REITS produced the highest return on capital in 2013 compared to
the other real estate REITS in the US.
This investment has gone from a question of are month to month rental contracts good collateral for a loan to an investment that is commanding ever higher
purchase prices in the marketplace. This is partly due to the demographic
shift that is taking place in the country today. There are 2 dynamics that are
in play today that create a perfect storm for increased demand for well-located
quality self-storage facilities. These 2 dynamics that are taking place today
is the behavior of both the “Baby Boomers” and Generation “Y”.
The “Baby Boomers” are downsizing from
their large colonial type homes to smaller housing in retirement. This is compounded
by the fact that the Boomers’ children are taking longer to form their own
families. This means Mom and Dad have to hold onto more stuff. The second
dynamic is that Generation “Y”; the 20 to 35 year olds are not viewing the
American Dream as being move to the suburbs and buy a house to start building
their net worth. These people witnessed Mom and Dad either losing their home in
the financial meltdown, having their parents’ home be “under water” with their
mortgage balance, or just unable to sell their home due to lack of equity built
up in it. So owning a single family home with plenty of storage space is not as
appealing was it was in the Boomers generation. Either way these dynamics
support the thesis of continued increased demand for quality run self-storage
facilities in the future.
NAI Norwood
Group is an affiliate of NAI Global, the world’s leading managed network of
independently owned commercial real estate brokerage firms. Through this
network of 355 offices in 55 countries, NAI Norwood Group is able to leverage
their 45+ years of dedicated local experience around the world. With our
extensive background and strong local contacts, we are able to assist
individual corporations in negotiating leases, sales, business brokerage,
investments, relocation, site selection and development. For more information
please visit www.nainorwoodgroup.com. Or
contact one of our offices: 116 South River Road, Bedford, NH 03110, (603) 668-7000
or 28 Deer Street Suite 301, Portsmouth, NH 03801 (603) 431-3001.
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