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480 Centre Street
Quincy, MA
LOCATION
Quincy, MA
BUILDING SIZE
1,351 units
(103,562 RSF / 155,000 GSF)
YEAR ACQUIRED
2018
Our Original Vision
R.J. Kelly went under contract to acquire 3 acres of vacant land at 480 Centre Street in Quincy, MA in late 2018. The land previously served as parking for Home Depot which was no longer needed. R.J. Kelly’s business plan included subdividing the land from the remaining parcel still in use by Home Depot and then permitting and building a new four-story, Class A self-storage building. The site was chosen for its superior location, high traffic volume, and premium visibility in what R.J. Kelly deemed a high-growth market that lacked comparable product. R.J. Kelly’s underwriting assumed a 2-year construction period followed by 3 years of lease-up, ultimately reaching 90% occupancy before selling at the end of year 5 of the investment period.
The Outcome
R.J. Kelly closed on the acquisition of the land in January 2020 after completing a complex subdivision and permitting process. Construction began in April 2020 and a certificate of occupancy was achieved in January 2022. The project required managing numerous development hurdles, including bringing permanent power to the site. R.J. Kelly determined that the opportune time to sell was upon receiving certificate of occupancy and prior to lease-up so that we could capitalize on a stable of institutional buyers with competitive certificate of occupancy pricing. After marketing the property for sale, R.J. Kelly sold the building in February 2022 at a price reflective of the year 5 fully stabilized operating budget and above our original exit price expectations. The early sale enabled R.J. Kelly to avoid lease-up risk while still delivering returns well in excess of our original underwriting projections.
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