603 Storage, a Northwood, N.H.-based self storage operator, and Jernigan Capital Inc., a merchant bank and advisory firm serving the same industry, intend to develop a 74,625 square-foot facility in Salem, N.H. The three-story, climate-controlled structure is proposed for 10 Hampshire Road. Construction is expected to begin during the first quarter of 2018, with completion scheduled for the fourth quarter next year, according to a press release.
Jernigan has committed $8.7 million toward the project, its first with 603 Storage.
This would be the sixth location for 603 Storage. The site is near New Hampshire Route 28, with visibility to an estimated 20,000 cars daily, the release stated. It’s also close to Interstate 95, which is the primary commuter arterial to Boston, about 20 miles away. Since Salem borders the state line between New Hampshire and Massachusetts, the storage facility would also serve Lawrence and Methuen, Mass.
In all, the submarket population is more than 100,000 people, with more than half estimated to live in multi-family housing. Jernigan estimates the self storage square footage per capita is below the national average. The market also features a wide range of retail, including a shopping center anchored by a Lowe’s home-improvement store across the street from the site, according to the release.
603 Storage operates self storage facilities in Barrington, Candia, Milton, Northwood and Wakefield, N.H.
Jernigan Capital is a commercial real estate finance company that provides financing to private developers, operators and owners of self storage facilities. It offers financing for acquisition, ground-up construction, major redevelopment or refinancing. Since Jan. 1, the company has closed 27 self storage investments totaling more than $357 million. It typically holds a 49.9 percent profit interest in its joint-venture transactions, according to company officials. The firm intends to be taxed as a real estate investment trust and is externally managed by JCap Advisors LLC.