250 turnpike road: beehive

PROPERTY TYPE: OFFICE > CLIMATE-CONTROLLED STORAGE FACILITY
ACQUIRED: MARCH 2022
SIZE: 56,674 RSF
PURCHASE VALUE: $3.525 MILLION
CURRENT APPRAISALS: $8.6-$11 MILLION

PROPERTY TYPE:
OFFICE > CLIMATE CONTROLLED STORAGE FACILITY

ACQUIRED:
MARCH 2022

SIZE:
56,674 RSF

PURCHASE VALUE:
$3.525M

CURRENT APPRAISALS:
$8.6-$11M

Acquired in March 2022, the property, once the headquarters of Honeywell/Kaz Engineering, offered significant potential for growth. Its strategic location on Route 9 ensures visibility, accessibility, and proximity to key amenities, marking a strategic move by Ferris Development Group to revitalize and maximize the property's potential. 

EXCECUTIVE SUMMARY:

In March 2022, Ferris Development Group strategically acquired a 56,674 RSF property at 250 Turnpike Road, Southborough, MA. This vacant office building, nestled along Route 9 (east), underwent a remarkable transformation from an office building into a cutting-edge, climate-controlled self-storage facility catering specifically to contractors, tradespeople, and retail customers. Beehive (www.beehivepros.com), the innovative brand now occupying this revitalized property, has redefined the self-storage sector by offering tailored solutions that go beyond the traditional rental unit experience. 

This case study delves into Ferris Development Group's journey, from the acquisition of a distressed property to the successful transformation that has now become a dynamic asset under the Beehive banner. Beyond the revitalization of an undermanaged property, this project laid the foundation for Beehive's groundbreaking entry into the storage industry. 

The acquisition of 250 Turnpike Road and its transformation into a storage facility provided Beehive with the platform needed to make its mark.

Beehive, as a nascent brand in the self-storage industry, faced multifaceted challenges intrinsic to its start-up journey. The primary focus was to establish a proof of concept, transcending theoretical analyses to ensure tangible execution in the local market for the successful lease-up of the facility. Communicating Beehive's essence to the community, particularly its unique appeal to contractors and tradespeople, emerged as a critical challenge. 

Partnering with Ferris Development Group addressed Beehive's imperative need for a strategic location to lay the foundation for its growth. The acquisition of 250 Turnpike Road and its transformation into a storage facility provided Beehive with the platform needed to make its mark. Securing highly visible real estate that aligned with logistical needs and elevated standards was paramount for Beehive's success. 

BUSINESS NEEDS:

CHALLENGES FACED

KEY STRATEGIES

MARKET ANALYSIS:

Extensive research with Self-Storage 101 determined feasibility, focusing on site pros and cons, local demographics, competitors, and ideal rental rates. A customized approach aligned with Beehive's vision. 

CUSTOMIZED SOLUTIONS:

Collaborative efforts led to an agreed-upon unit mix and a competitive construction budget, securing below-market pricing. The facility, completed under $5.4M, showcases Ferris Development Group's hands-on approach and in-house capabilities, with a cost per square foot (~$95/SF) below the market average for conversions of this nature. 

IMPLEMENTATIONS:

Ferris Development Group's in-house Asset Management team, in close collaboration with Newmark, executed a meticulously planned acquisition of the property. Through a strategic lens, storage was identified as the highest and best use, setting the stage for a transformative journey. Post-acquisition, our team engaged in structural enhancements and collaborated extensively with Beehive to align the facility with its distinctive branding. This thorough process unfolded over an 18-month construction period, ensuring each detail was thoughtfully addressed. 

Post-acquisition, our team engaged in structural enhancements and collaborated extensively with Beehive to align the facility with its distinctive branding. This thorough process unfolded over an 18-month construction period, ensuring each detail was thoughtfully addressed.

COLLABORATION:

In collaboration with Beehive, Ferris Development Group meticulously tailored the facility to align with Beehive's unique needs and overarching brand mission. A standout feature of Beehive facilities is the provision of drive-up access to storage units directly from the property's exterior, enhancing convenience for its clientele.

Navigating the initial office configuration at the time of acquisition, our teams worked extensively with Beehive to identify optimal locations on the property capable of accommodating larger units with coveted drive-up access. Overcoming structural challenges, we successfully penetrated the existing brick façade, expertly crafting and framing new openings for roll-up doors. These exclusive units, distinguished by their added accessibility and convenience, command a premium price, reflecting the enhanced service they offer.

Recognizing Beehive's status as a young startup brand, our collaboration delved into determining the best technology solutions for their facility. Drawing insights from extensive industry research and participation in national storage conferences, our team ensured the facility boasts cutting-edge, state-of-the-art features.

The facility is equipped with a keyless entry system powered by Noke, allowing members and clients of Beehive to seamlessly open all main entrances and individual units using their phone or mobile app. This not only enhances accessibility but also provides the landlord and Beehive with a streamlined mechanism to track facility access, enabling data-driven insights for improved operational efficiency.

In tandem with technology integration, Ferris Development Group collaborated with Beehive to implement a robust security infrastructure. State-of-the-art security cameras blanket every corner of the facility, ensuring comprehensive coverage. This meticulous approach to security underscores our commitment to the safety and satisfaction of Beehive's members, instilling confidence in their choice of storage provider.

Beyond traditional self-storage offerings, Beehive distinguishes itself by providing an array of professional services such as water remediation, contractor services, HVAC assessments, and more. To streamline the selection of these services, our collaboration led to the development of shared conference and meeting areas within the facility.

These purpose-designed spaces serve dual functions: providing tradespeople within the building an area for paperwork and meetings and offering a convenient locale for community clients to meet with prospective trade professionals. The layout and implementation of these conference rooms are meticulously planned to foster collaboration and networking, embodying Beehive's commitment to creating an efficient and conducive environment.

In summary, Ferris Development Group's collaboration with Beehive not only customized the facility to meet specific needs but also integrated cutting-edge technology and comprehensive security measures. This holistic approach contributes to Beehive's success in redefining the self-storage experience and establishing a facility that goes beyond storage, creating a multifaceted and innovative space for both tradespeople and the local community.

RESULTS:

In December 2023, Beehive celebrated the opening of its facility, marking the beginning of lease-up efforts. The positive impact on both the local community and Beehive's growth trajectory has been significant and is expected to be substantial. As a result of this success, Ferris Development Group has been enlisted to develop additional storage solutions at 250 Turnpike Road (exterior solutions) and actively seek properties to support Beehive's expansion and future growth. 

The property, initially acquired for $3.525 million, has undergone a robust transformation, now appraising at $8.5 million (as completed) and $11 million (as stabilized). This highlights the substantial increase in value achieved. The strategic planning and execution of this project have endowed the ownership group with a low basis in the building. If sold, the return on investment would be notably significant. 

This financial success is not merely a testament to a well-executed strategic plan; it also underscores Ferris Development Group's in-house capabilities and the extensive network of contacts that enhance our proficiency. 

CONCLUSION:

Ferris Development Group takes pride in contributing to Beehive's remarkable success story, orchestrating the transformation of a neglected property into a thriving, community-enhancing storage facility. This achievement not only reflects our commitment to excellence but also demonstrates our ability to turn visions into concrete, value-driven realities. For commercial real estate ventures that demand strategic acumen and transformative expertise, our team stands ready. Contact us today to explore how Ferris Development Group can elevate your projects and contribute to your success. 

next project
property name here