James E. Hanson II, President and CEO of The Hampshire Companies
PROVIDENCE, RI—A joint venture of Morristown, NJ-based Hampshire Companies and Harrison Street of Chicago will be developing institutional quality self-storage facilities along the I-95 corridor in markets in the Southeast and Northeast sections of the US.
The firms say the new self-storage facilities will be developed from Boston to Washington, DC. Hampshire and Harrison Street also announced that the joint venture's first self-storage property will be the ground-up development of a seven-story self-storage facility along Interstate 95 in Providence, R.I. The project is expected to break ground in the first quarter of 2019. The two firms pointed to Providence's high population density, superior accessibility and lack of institutional quality facilities as key reasons why they jointly decided to develop the self-storage property there.
The Hampshire Companies and Harrison Street say they plan to announce several additional self-storage development projects in the coming months in the aforementioned Boston to Washington, DC corridor.
“Although the eastern United States presents tremendous opportunity for self-storage development, it is among the most crowded and competitive in the United States, which makes it difficult for new investors to enter the market,” says James E. Hanson II, president and CEO of The Hampshire Companies. “Our strategic programmatic partnership with Harrison Street provides us with a unique opportunity to successfully deploy capital into an increasingly competitive marketplace. It also enables our team to build upon our track record of success and pursue additional self-storage development opportunities over the next several years.”
Christopher Merrill, co-Founder and CEO of Harrison Street, adds, “We are pleased to partner with Hampshire, a best-in-class storage developer, as we identify attractive investment opportunities in a region with favorable demographics and high barriers to entry. Hampshire's proven track record makes them a valuable partner for our team, and I am excited to leverage our deep sector expertise and resources that will benefit our investors and partners.”
The two firms touted their respective expertise in the self-storage arena as factors in forming the joint venture. The Hampshire Companies has been one of the nation's premier self-storage developers. Hampshire has repositioned or developed 33 self-storage facilities with an aggregate value of more than $440 million since 2012. Presently, Hampshire has 12 self-storage development projects underway involving a total of $217 million of investment across the eastern United States and is targeting another 12 additional projects with an aggregate value of more than $215 million in the pipeline.
Harrison Street, which has $18 billion in assets under management, has invested $2 billion across 223- storage properties and has sold 137 self-storage properties for a gross transaction value of $1.0 billion since its inception in 2005.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
