34 Sanborn St, Gardner, MA, 01440-4127, US

Gardner Self Storage

Asset description

LOCATION: The property is located at the southwest corner of Cross Street and School Street and also has frontage on Sanborn Street and South Lincoln Street in Gardner, Worcester County, Massachusetts

ACRES : +/- 5.26 Acres (228,957 square feet)

FRONTAGE: +/- 600’ along the north side of Sanborn Street; +/- 600’ along the south side of Cross Street; +/- 325’ along the west side of School Street; +/- 325’ along the east side of South Lincoln Street

TRAFFIC COUNT : Over 10,000 VPD (Central St), over 13,000 VPD (Main St), and over 6,000 VPD (Elm St)

UTILITIES : Water and sewer services: Gardner Water Department, Electric service: National Grid, and Gas service: Unitil.

YEAR BUILT: The building was originally constructed in 1958 and was completely renovated and converted into a self storage facility in 2016, with multiple expansions completed since

CONSTRUCTION DETAIL: The facility is consists of nine connected buildings. A portion of the buildings are three stories and a portion of the buildings are four stories due to the elevation of the site

ELEVATOR DETAIL : The facility has one elevator with a 6,000 lb. capacity and an additional freight elevator that was recently restored

APARTMENT : There is no on-site apartment

OFFICE : The customer service office is approximately 1,140 square feet in size

CLIMATE CONTROLLED: The self storage units are 100% climate controlled

FEATURES AND AMENITIES: The facility has electronic access control, 24-hour video surveillance, climate controlled units, surface parking units with secure fencing, covered loading areas and a retail oriented customer service office

MANAGEMENT : The facility is professionally managed by CubeSmart

SECURITY :The facility is equipped with a 24-hour video surveillance system

OPERATION HOURS (OFFICE): Monday - Friday: 9:30 AM - 6:00 PM; Saturday: 8:30 AM - 5:00 PM;

Sunday: 11:00 AM - 3:00 PM (Virtual)

OPERATION HOURS (ACCESS): All Week: 6:00 AM - 10:00 PM

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Attributes

Building area Net

30,109 sm

Year built

2016

Occupancy

97.00%

Media

Investment highlights

Strong Existing Cash Flow with Rent Growth Upside

The property has a current physical occupancy of over 96% and is approaching economic stabilization, so the property has great in-place cash flow and rental rate upside. In addition, the area surrounding the property lacks sufficient supply and there are no upcoming developments within a five mile radius. This allows for a potential buyer to add value to the property through rate increases to existing tenants as the property is the only Class A storage facility in the area

Minimal Surrounding Competitive Supply

The area within a 5-mile radius of Gardner Self Storage contains 5 square feet of storage space per person, which is extremely underserved in a dense, urban area. At 5.03 square feet of storage per person, the lack of supply and no upcoming storage development bodes well for both future rent and occupancy growth at the property

Potential Expansion

The property has over 56,000 of gross rentable square feet (41,200 SF on floor 4 and 15,600 SF on floor 1). The raw space can be used to create additional revenue through expansion of the storage area or for new commercial tenants

Resilient Asset Class

Self Storage as an asset class has historically performed very well during economic downturns. Self storage was the only REIT sector to post a positive total return during the Great Financial Crisis as rental rates stayed effectively flat while withstanding the economic turbulence. More recently, self storage REITs were the best performing REITs by asset class

High Quality Storage Conversion

The building was converted to self storage use in 2016 and was designed with all features and amenities typically found in a new Class A facility. Self storage competition is limited in the surrounding area, and subject property is the only Class A self storage facility in its competitive market. The lack of quality self storage space in the surrounding area results in a wide-ranging customer base, with some current customers residing in excess of 10 miles away from the property

Commercial Tenants

In addition to the storage space, the facility has over 160,000 NRSF of commercial space, which generates over $40,000 of income per month. The tenants' leases are a combination of month-to-month leases and long-term leases with extension options