A Case Study of ARCO Design/Build’s Partnership with SAFStor in Essex, Massachusetts
In today’s competitive self-storage market, the most profitable opportunities often hide behind the most complex challenges. While many developers shy away from brownfield sites with industrial histories, experienced teams recognize these properties as diamonds in the rough – offering lower acquisition costs, strategic locations, and substantial upside potential when properly developed.
The key lies in partnering with specialists who understand how to navigate regulatory complexities, manage remediation processes, and transform industrial infrastructure into modern self-storage facilities that serve their communities for decades to come.
Why Brownfield Sites Offer Hidden Value
Industrial properties present unique advantages for self-storage development that many developers overlook:
Strategic Location Benefits
- Established infrastructure: Transportation networks and utility access already in place
- Population proximity: Close to urban centers without premium land costs
- Zoning flexibility: Accommodates self-storage use more easily than residential developments
Economic Advantages
- Significantly lower acquisition costs: Below comparable greenfield sites due to perceived complexity
- Value creation potential: Adaptive reuse can generate substantial appreciation beyond typical development margins
- Tax opportunities: Tax credits and municipal support for site remediation
Regulatory Compatibility
Unlike multi-family or mixed-used developments, self-storage facilities operate under more flexible occupancy codes, making them ideal candidates for former industrial sites after proper remediation.
Brownfield vs. Greenfield Economics: The Numbers Tell the Story
| Factor | Brownfield Site | Greenfield Site |
| Acquisition Cost | Significantly lower | Premium pricing |
| Location | Closer to population centers | Often peripheral |
| Regulatory Complexity | Higher (remediation required) | Lower |
| Upside Potential | Higher (adaptive reuse, incentives) | Moderate |
| Time to Market | Longer (due to remediation) | Shorter |
| Community Impact | High (revitalization, cleanup) | Moderate |
Case Study: SAFStor Essex – Transforming Industrial Legacy into Modern Storage
ARCO Design/Build recently completed a complex transformation project that demonstrates how strategic planning and specialized expertise can unlock value from the most challenging sites.
The Challenge
The Essex, Massachusetts property carried a 60-year industrial legacy as a steel mill and steam power plant. Massive 1 Million Gallon underground tanks, confined-space access requirements, and strict regulatory oversight made the site unattractive to most developers. Without intervention, the property faced continued deterioration while the city planned adjacent rail trail improvements that would further complicate future development.
The Strategic Approach
Rather than viewing these challenges as obstacles, our team recognized the site’s potential. Self-storage development offered the perfect solution – flexible occupancy requirements made remediation economically viable while preserving the property’s value for long-term community benefit.
Key Project Elements
- 117,000 square feet of modern self-storage facility
- Complete site remediation including underground tank removal
- Regulatory compliance with MassDEP and environmental specialists
- Strategic timing to coordinate with municipal rail trail development
Complex Remediation Execution
The project required sophisticated coordination across multiple specialized disciplines:
Underground Tank Remediation
Our team managed the removal of tanks situated 14-20 feet below surface level, accessible only through confined space protocols. The process required constant coordination with regulatory authorities and specialized equipment to safely extract decades-old materials while maintaining strict environmental standards.
Case Study Highlight: Innovative Tank Remediation
When faced with a 60-year-old underground bunker tank, our team devised a unique solution. By various approved environmental methods with associated oversight, we safely removed/disposed the contents of the tank (North of 30,000 gallons) enabling safe removal in 5,000-gallon increments for off-site disposal. This approach not only met strict environmental standards but also kept the project on schedule and within budget.
Innovative Material Management
Working with environmental specialists, we developed cost-effective approaches to handle remnant materials. The concrete tank walls required selective removal – the inner 4-8 inches went to specialized disposal facilities while the remaining material was processed on-site for productive reuse, filling voids left by tank removal.
Comprehensive Safety Protocols
Discovery of buried materials during demolition required implementing rigorous safety systems including:
- Multi-compartment and containment areas for personnel safety
- Equipment track-out procedures with truck wash containment stations
- Continuous air monitoring and specialized disposal processes
- 1,000 tons of crushed clean concrete successfully processed for reuse
Environmental and Community Impact: Beyond Profit
Brownfield redevelopment creates value that extends far beyond individual project returns:
Sustainability Benefits
- Reduces urban sprawl by utilizing existing infrastructure
- Eliminates environmental hazards that have persisted for decades
- Prevents groundwater contamination through proper remediation
- Supports circular economy through material reuse and adaptive construction
Community Revitalization
- Transforms eyesores into productive community assets
- Increases property values in surrounding neighborhoods
- Creates employment during construction and ongoing operations
- Enhances municipal tax base through improved property valuations
“Projects like Essex demonstrate how thoughtful development can address environmental legacy issues while creating modern facilities that serve growing community needs,” says Eric Thompson, President of ARCO’s Self-Storage Division.
Strategic Lessons for Developers
The Essex project demonstrates several principles that smart developers can apply to similar opportunities:
- Regulatory Expertise as Competitive Advantage
Success with complex sites requires teams that understand regulatory requirements before challenges arise. Proactive coordination with agencies like MassDEP prevents delays and ensures compliant solutions from project inception.
- Integrated Problem-Solving
Complex remediation demands seamless coordination between environmental specialists, regulatory authorities, and construction teams. Single-source accountability eliminates finger-pointing while ensuring all aspects work toward common objectives.
- Strategic Material Management
Innovative approaches to contaminated material handling can significantly impact project economics. On-site processing and selective disposal strategies transform waste streams into cost savings.
- Community Value Creation
Brownfield remediation projects create value beyond the immediate development. The Essex project enhanced long-term value for the adjacent rail trail while eliminating environmental risks that had persisted for decades.
Why Self-Storage Works for Brownfield Development
Self-storage facilities offer unique advantages for challenging sites:
Flexible Design Requirements
Unlike residential or retail developments, self-storage facilities can accommodate irregular layouts and work around existing infrastructure constraints.
Lower Occupancy Impact
Minimal daily traffic and reduced utility demands make self-storage ideal for sites with infrastructure limitations.
Long-Term Stability
Once established, self-storage facilities provide stable, long-term use that supports ongoing community development initiatives.
Risk Management Through Expertise
Successful brownfield development requires specialized capabilities that most general contractors cannot provide:
Environmental Coordination
Continuous liaison with regulatory authorities ensures compliance while maintaining project momentum. Our teams understand permitting requirements and maintain relationships that facilitate smooth approvals.
Specialized Equipment Access
Complex remediation often requires specialized equipment and confined-space expertise. Established vendor relationships ensure access to necessary resources without project delays.
Integrated Project Delivery
Design-build methodology proves especially valuable for complex sites where discovery-driven changes require immediate design adjustments and cost analysis.
The Economic Reality: Maximizing ROI Through Strategic Development
Brownfield self-storage development offers compelling economics when properly executed:
Lower Land Costs
Industrial sites typically cost significantly less than clean development parcels, creating immediate equity opportunities for savvy developers.
Value Creation Potential
Successful remediation and adaptive reuse can create substantial value appreciation beyond typical development margin – often delivering considerably higher returns than greenfield projects.
Market Positioning
Transformed brownfield sites often occupy strategic locations that provide competitive advantages in their markets, with proximity to population centers that greenfield sites cannot match.
Incentive Opportunities
- Federal and state tax credits for brownfield remediation
- Municipal development incentives for site revitalization
- Expedited permitting for projects that address environmental concerns
Looking Forward: Strategic Site Selection
Smart developers recognize that today’s challenging sites become tomorrow’s success stories through proper planning and execution:
Site Evaluation Criteria
- Regulatory compatibility with self-storage use
- Infrastructure capacity for modern storage operations
- Market demand supporting long-term facility success
- Remediation costs that maintain project viability
Partnership Requirements
Success requires teams with demonstrated brownfield experience, regulatory relationships, and integrated project delivery capabilities.
The Bottom Line
Brownfield development represents one of the most significant opportunities in today’s self-storage market. While complex sites require specialized expertise and careful planning, they offer substantial rewards for developers willing to look beyond surface challenges.
The Essex project demonstrates how proper planning, regulatory expertise, and integrated execution can transform industrial legacy sites into modern facilities that serve their communities while generating strong returns for investors.
For developers seeking to maximize opportunities in today’s competitive market, brownfield sites offer a path to profitable development that others overlook. Success requires the right partnership with teams who understand both the challenges and solutions.
Ready to Unlock Hidden Value in Complex Sites?
For developers seeking to maximize opportunities in today’s competitive self-storage market, brownfield sites offer a path to profitable development that others overlook. Success requires the right partnership with teams who understand both the challenges and the solutions.
Contact Adam Winters
Director of Business Development, Self-Storage Division
📞 919.264.4710
✉️ awinters@arcodb.com
Let’s evaluate your site’s potential together.
ARCO Design/Build’s Self-Storage Division combines decades of specialized experience with a programmatic approach that transforms one-off projects into systematic, repeatable processes. Whether you’re developing a single facility or building a multi-market portfolio, our end-to-end accountability – from feasibility to completion – ensures predictable outcomes that competitors cannot guarantee.
