- For sale
The Self Storage Group of Colliers International is pleased to exclusively offer to qualified investors the opportunity to purchase the CubeSmart (managed) self storage property located at 225 Lordship Boulevard in Stratford, Connecticut. This newly constructed, 100% climate control facility is strategically located along the I-95 interstate highway corridor with interchange access from both directions less than .25 miles away. Over 120,000 vehicles per day pass by the Lordship Boulevard exit on I-95, while 22,000± vehicles per day pass directly in front of the property along Lordship Boulevard.
This CubeSmart facility was part of an overall redevelopment plan for the site where the former Stratford Hotel & Conference Center last operated in 2016. The developers (Empire Residential, LLC) purchased this site in late 2016 and have since converted the former 6-story hotel building into a 70-unit apartment facility (Empire 225). This luxury apartment facility, which opened in late 2019, is currently 100% leased. The redevelopment plan also included the 4-story CubeSmart self storage facility we are marketing herein as well as one or two commercial pads in front of the apartment complex. The construction of the CubeSmart facility is scheduled to be completed in early 2021 with certificate of occupancy expected in early to mid-February.
This newly built structure is a 4-story, 100% climate control facility with 914 units ranging in size from 5’x5’ to 10’x30’. In addition, outside of the building and along the south property line there are 11 parking spaces available for rent.
Not only will this new CubeSmart benefit from its excellent location just off of I-95, it will also benefit from the limited amount of self storage competition within a 3-miles radius. We calculate the 3-mile saturation to be 3.73 square feet per capita for exiting self storage space. This number increases slightly to 4.47 square feet per capita when accounting for proposed subject facility as well as others in the development pipeline. More importantly, Radius indicates there is a limited supply of existing climate control space within 3 miles of the subject (only .5 square feet per capita).
This asset is being offered for $17,950,000, which indicates a 6.58% cap rate based upon a stabilized NOI projection of $1,181,161. Ultimately, the purchaser of this CubeSmart will be acquiring a brand new, institutional quality asset that will compete very well in its market, especially considering the limited supply of competing self storage space.