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 Gets New Six-Story, Climate-Controlled Self-Storage After $13.9M Construction Loan
Key development and financing in a busy North Shore corridor
A local capital advisory firm arranged a $13.9 million construction loan to build a new six-story, climate-controlled self-storage facility at the high-visibility intersection of Route 1 and I‑95 in Peabody, Massachusetts. The project site sits in one of the North Shore’s most active growth corridors and is positioned to serve rising demand for modern storage options around Greater Boston.
Loan, lender and structure
The construction financing was provided by a Massachusetts-based regional bank that offered competitive terms, a flexible structure and fast execution. The financing is presented as a sign of continued lender confidence in the regional self-storage market and enabled the developer to advance construction toward an expected opening in early 2026.
Project scope and management
The planned facility will total 136,410 square feet across six stories and will offer secure, climate-controlled units designed for a mix of household and business customers. A Revere-based developer has assembled the development team for the site, and the completed facility will be managed by Public Storage, one of the largest self-storage operators in the United States.
Why the site matters
The Route 1 / I‑95 location provides strong visibility and regional access, benefiting from traffic and demographics that support storage demand. The project team cited growing need for accessible, modern storage solutions in suburban markets around Boston, and the transaction aligns with broader capital flows into both self-storage and industrial/outdoor storage sectors.
Local and regional market context
Recent activity in the region’s storage market includes an acquisition of a separate Peabody asset by a major national operator. That three-story property, located on Andover Street, encompasses more than 76,000 square feet and opened earlier in the year. Market reports show multiple trades and steady interest in Class A storage in the broader Boston area, with notable leasing and transaction volume year over year.
Capital markets trends
The Peabody construction loan is part of a larger picture where institutional and regional lenders continue to finance storage and logistics properties. Separately, capital markets teams have placed large facilities for industrial outdoor storage portfolios and for multi-property self-storage acquisitions, reflecting investor appetite for assets that serve e-commerce, logistics and last-mile distribution needs.
Firm and advisor background
The advisory firm that arranged the Peabody loan maintains offices across several states and brings experience in institutional finance, acquisitions, leasing and brokerage sales. Its principals have worked on capital placements for commercial real estate projects across multiple property types and regions.
Timing and next steps
Construction is expected to proceed over the next several months, with the facility targeted to open in early 2026. The development team will complete permitting, site work and vertical construction while coordinating with operating and management partners to ready the facility for lease-up and public access.
What this means for local stakeholders
For local residents and businesses, the project adds modern storage capacity and brings development activity to a prominent highway interchange. For lenders and investors, the deal is another example of capital deployment into storage and logistics sectors that are drawing attention for steady cash flows and demand resilience.
Frequently Asked Questions
What is being built at Route 1 and I‑95 in Peabody?
A six-story, 136,410 square foot climate-controlled self-storage facility with secure units and modern amenities.
How much construction financing was arranged?
The project received $13.9 million in construction financing from a Massachusetts-based regional bank.
Who will manage the facility when it opens?
The finished facility will be managed by a national self-storage operator that runs a large portfolio of storage properties.
When is the project expected to open?
The facility is on track to open in early 2026, subject to construction and permitting timelines.
Why is this location important?
The Route 1 / I‑95 intersection is a major growth corridor on the North Shore, offering visibility, highway access and proximity to residential and commercial demand centers.
Does this deal reflect broader market trends?
Yes. The financing and development align with continued capital flow into self-storage and industrial storage sectors, where lenders and investors are active due to strong demand fundamentals.
Key Project Features
| Feature | Details |
|---|---|
| Loan amount | $13.9 million |
| Location | Intersection of Route 1 and I‑95, Peabody, MA |
| Building size | 136,410 square feet |
| Stories | Six |
| Unit type | Secure, climate-controlled units |
| Operator | National self-storage operator (operator to manage upon completion) |
| Expected opening | Early 2026 |
| Financing source | Massachusetts-based regional bank |
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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