Andover Management Group LLC, a Lexington, Ky.-based real estate developer known primarily for its apartment complexes, intends to build its first self-storage facility at a Nashville property it has under contract. Citadel Self Storage at 506 Fesslers Lane will comprise 137,950 square feet and cater to the city’s growing urban population near downtown, according to the source.
“We’re kind of opportunistic developers, and we see unmet demand in the self-storage industry in Nashville, which we’re looking to fill with this project,” Dan Kunau, development coordinator, told the source.
Although there are 325 self-storage facilities comprising 16.6 million net rentable square feet in the Nashville metropolitan area, most aren’t near downtown and other urban areas known as the Gulch and Midtown, according to the source. An estimated 80 people per day are moving to Nashville, coinciding with a boom in development of condominiums and apartments in the city’s urban core.
“Ten years ago, [self-storage] was the red-headed stepchild of commercial real estate,” Dave Sexton, a commercial real estate appraiser for R.K. Barnes & Associates Inc., told the source. “Now next to multi-family, it’s become the apple of the eye.”
Other self-storage operators, including Nashville-based A+ Storage of Tennessee LLC, have also planned new projects in the area. A+ Storage currently operates a facility on Division Street in the Gulch and intends to develop new properties in Germantown and an area known as the Eighth Avenue Corridor, between Interstates 40 and 440, company founder Tommy Pierce told the source.
Although Andover’s specialty is apartments, Kunau said some of the company’s partners have experience in the self-storage industry. “We feel for that site, the highest and best use is self-storage,” he told the source. “Nashville is just a hot real estate market in general.”
Andover is also pursuing a self-storage project in Charleston, S.C. At its residential properties, the developer is committed to building assets that fit a site’s unique characteristics, rather than take a templated approach to design, according to the company website. Its Kentucky properties include Beaumont Farms, Crescent at Shadeland, Lakewood Park and Property 358.
- Andover Management Group: Website
- The Tennessean: Nashville Looks to Fill Demand for Self-Storage Space