Peabody, Massachusetts, September 12, 2025
News Summary
A Peabody developer secured a $13.9 million construction loan from a Massachusetts regional bank to build a six‑story, 136,410 sq ft climate‑controlled self storage facility at the high‑visibility Route 1 and I‑95 interchange. The project, arranged by a Peabody‑based capital advisory firm, will be managed by a national operator upon completion and aims to serve household and small business demand across the North Shore and Greater Boston corridor. Construction is planned through 2025 with an anticipated opening in early 2026, subject to permitting and supply‑chain timelines.
Peabody Developer Secures $13.9M Construction Loan for Six‑Story Climate‑Controlled Storage at Route 1 & I‑95
Key facts up front
Arranged construction financing totaling $13.9 million will fund a new six‑story, 136,410 square foot self‑storage facility at the high‑visibility intersection of Route 1 and I‑95 in Peabody, Massachusetts. The site sits in one of the North Shore’s most active growth corridors and the project is expected to open in early 2026. A Massachusetts‑based regional bank provided the loan on competitive, flexible terms, signaling sustained lender confidence in the local self‑storage market.
Project overview
The new facility will offer secure, climate‑controlled units built to serve rising demand for modern storage options across the Greater Boston area. The development will be a multi‑level structure designed to maximize urban infill capacity while providing features expected by today’s renters. Upon completion, operations will be handled by Public Storage (PSA), a national operator with an extensive portfolio of storage assets.
Capital and advisory
The construction loan was arranged by a Peabody‑based commercial real estate capital advisory firm. The financing came from a regional bank headquartered in Massachusetts and was structured with competitive pricing and flexible terms to support construction and lease‑up. Market participants view the financing as evidence that institutional and regional lenders remain active in the self‑storage sector in suburban and infill locations.
Development team and timeline
A Revere‑based developer assembled the development team for the project; a full project management roster and subcontractor list are expected as the build advances. The timetable calls for construction to move through 2025 with an anticipated opening in early 2026, contingent on permitting and supply chain timelines common to large, urban storage builds.
Why this location
The Route 1 / I‑95 interchange is a major artery for North Shore commuters and businesses, making it a target for retail, logistics and storage uses. The site’s proximity to highways, shopping nodes and residential neighborhoods positions the facility to serve both household and small business storage needs. Developers cite strong regional fundamentals — population growth in suburban corridors, limited new supply in certain submarkets, and continued demand for climate‑controlled amenities — as drivers behind the project.
Market context and comparable activity
Recent transactions in the area underscore investor interest. A nearby three‑story, Class A storage property changed hands earlier in the year for $19 million and features more than 1,100 climate‑controlled units, gated access and surveillance. That asset sits within a few miles of the new project and illustrates an active trade market for well‑located, modern storage facilities.
On a broader scale, institutional and specialty lenders continue to supply capital to both traditional self‑storage and industrial outdoor storage platforms nationwide. Recent financings for large portfolios and acquisition facilities reflect lender appetite for cash‑flowing storage and outdoor logistics assets, with sponsors pursuing scale, consolidation and strategic infill acquisitions.
Advisory firm profile
The capital advisor that arranged the loan maintains regional offices across several states and brings experience in institutional finance, acquisitions, leasing and brokerage sales. The firm emphasizes structuring capital solutions that align with sponsor timelines and asset‑level operating plans.
What to watch
Key items to monitor as the project progresses include permitting milestones, construction start and major subcontractor awards; lease‑up velocity once units are preleased or marketed; and how the facility is positioned relative to competing properties within a three‑mile radius. Financing markets and interest rate conditions will also influence refinancing or permanent financing timing post‑construction.
FAQ
What type of storage will the new facility provide?
The project will offer secure, climate‑controlled storage units intended for residential and small business renters seeking modern amenities and access.
Where is the site located?
The facility is sited at the intersection of Route 1 and I‑95 in Peabody, Massachusetts, a high‑visibility corridor on the North Shore.
Who arranged the financing and who provided the loan?
A local capital advisory firm arranged the $13.9 million construction loan, which was provided by a Massachusetts‑based regional bank on competitive and flexible terms.
When will the facility open?
The current schedule targets an opening in early 2026, subject to permitting and construction timelines.
Who will manage the property after completion?
Management and day‑to‑day operations will be handled by Public Storage, a national self‑storage operator.
How does this project fit within the local market?
The project adds large, modern, climate‑controlled capacity to a market that has seen recent trades and continued demand. Its location on a major highway corridor enhances access for a wide service area.
Key project features at a glance
| Feature | Details |
|---|---|
| Project type | Climate‑controlled self‑storage facility |
| Size | 136,410 square feet, six stories |
| Location | Route 1 & I‑95, Peabody, MA |
| Construction financing | $13.9 million from a Massachusetts regional bank |
| Expected opening | Early 2026 |
| Operator | Public Storage (management upon completion) |
| Developer | Revere‑based developer (team assembled; name not specified) |
| Advisory | Peabody‑based capital advisory firm arranged financing |
Deeper Dive: News & Info About This Topic
Additional Resources
- NEREJ: Larew‑Doyle Arranges $13.9M Construction Financing
- Wikipedia: Self‑storage
- Multi-Housing News: Public Storage Pays $19M for Boston‑Area Asset
- Google Search: Public Storage Boston $19M
- JLL: Arranges $231M Financing for Industrial Outdoor Storage Portfolio
- Google Scholar: Industrial Outdoor Storage Financing
- Boston Real Estate Times: $250M Acquisition Facility for Self‑Storage Equity Fund
- Encyclopedia Britannica: Self‑storage (search)
- Inside Self‑Storage: Development & Zoning Activity — August 2024
- Google News: Peabody Self‑Storage Route 1 I‑95
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