The city of Arvada has approved development of a 645-unit self-storage facility in the fast-growing western side of the community.
“This area of Arvada is experiencing explosive growth, and up until this year, there were no parcels in the area that offered storage as a use by right,” said Peter Shaw, founder of Blue Wing Capital Management LLC. Littleton-based Blue Wing Capital put the 2.9-acre development site at 14872 W. 69th Ave. under contract pending a zoning code change that allows storage uses within specific planned unit development-zoned districts. It expects to break ground in February.
Currently called Ralston Valley Self Storage, the facility will be managed by, and branded as, Life Storage. Life Storage is one of the largest self-storage companies in the world.
Designed by Golden-based Studio DH Architecture, the 89,539-square-foot building will be fully secured, offering keypad access and video surveillance. There will be two loading areas with elevators.
Storage units will range from 5 by 5 feet to 10 by 25 feet with rents estimated at approximately $1.69 per sf.
“It’s going to be a high-quality product, and we’re excited to offer it to the community,” Shaw said of the project, expected to cost approximately $77 per sf to develop.
According to Shaw, Blue Wing Capital Management was drawn to the area because it is “very underserved” from a self-storage standpoint. “All the local facilities were older facilities and were running 98 percent full,” he said.
He likes self-storage product because, “I come from a multifamily operational background. I like the ease of management and the high cash flows, and the solid return profile on investment capital.”
Blue Wing Capital Management initiated another self storage property at 11645 W. Belleview Ave. in Littleton, which it sold permit-ready. That facility is under construction.
Waner Construction was selected as the contractor for the Ralston Valley facility, which is projected to open in October.