Cinnaminson, New Jersey
Competition Creating Opportunity
At Global Storage Partners, we excel in transforming underutilized properties into thriving self-storage facilities and commercial centers that meet the needs of the local community. These objectives are what made a half-vacant strip mall in Cinnaminson, New Jersey an attractive property for a Global Storage Partners project. As a stabilized affluent market, Cinnaminson, New Jersey, is a charming township located in Burlington County. Known for its family-friendly neighborhoods and excellent school system, Cinnaminson offers a welcoming suburban atmosphere. Its convenient location on a major highway also provides easy access to Philadelphia and other surrounding areas.
Our real estate investment funds, backed by accredited investors, aim to take functionally obsolete properties and give them a second life by stewarding revitalization through self-storage conversions. Self-storage is a $44.3 billion industry, with an average monthly occupancy rate of 83.85%. Roughly 14.6 million American households have a storage unit, and as families grow, shrink, and relocate, the need for additional storage becomes necessary.
In this case study, we will share our process of converting a portion of a vacant mall into a modern hub of restaurants and services. Before our project, there was room for additional self-storage and quality preschools for a growing city. A key factor in this conversion is how competition created an opportunity for investors and suburban growth.
Market competition resulted in a run down, vacant grocery store
The Fierce Grocery Industry
Global Cinnaminson I, LLC started with a run-down grocery-anchored strip mall that sat vacant for seven years. In the late 90’s, Acme Markets opened a new location in an old department store on US 130-B, fronted by a handful of salons and a Blockbuster video rental store. In 2011, the Acme Markets on US-130 B closed after being priced out by a nearby ShopRite. Despite the location having a beautiful interior and attempts at competing with the ShopRite, the aesthetics and efforts were not enough to stay open. It closed along with five other north-eastern Acme Markets locations.
Competition among large grocery chains is fierce, driven by the constant need to attract and retain customers in a saturated market. These chains vie for consumer loyalty through various strategies, including competitive pricing, loyalty programs, and enhanced shopping experiences. Innovations such as online ordering, home delivery, and curbside pickup have become crucial in differentiating one chain from another. Additionally, the rise of organic and specialty products has prompted many chains to expand their offerings to meet diverse consumer demands. This fast-moving landscape requires constant adaptation and strategic planning to maintain a competitive edge.
The grocery industry generates massive amounts of revenue, with a cited $841.6 billion in 2023. There are approximately 62,383 Supermarkets & Grocery Stores businesses in the US as of 2023, which is a decline of -0.9% from 2022, following a 5 year downward trend. As large retailers with expanded offerings in entertainment and fashion such as Target and Walmart eat up competition, many local and regional grocers are forced to shutter.
Our modern self-storage facility has a reduced energy footprint.
From Vacant Grocery Store to Modern Self-Storage
Global Storage Partners' commitment to invigorating community identity is reflected in the ecosystem of businesses within the 6.99-acre lot anchored by the 935-unit self-storage facility. With Extra Space Storage chosen as the property management partner, our goal was to utilize a nationally recognized brand to spark growth where none had occurred in nearly a decade.
Designed with modernity in mind, Global Cinnaminson has incorporated advanced technology and sustainable practices to enhance security and reduce environmental impact. Facilities equipped with touchless phone entry and thumbprint scanners for unit access offer superior security, ensuring that only authorized individuals can enter specific units. This biometric technology not only deters unauthorized access but also provides customers with peace of mind.
As with all our projects, our aim is to salvage as much of the existing structure as possible to reduce the amount of waste generated and the need for virgin materials. Additionally, the integration of over 1,200 rooftop solar panels reflects our commitment to sustainability, harnessing renewable energy to power the facility and reduce operational costs. These eco-friendly installations contribute to a smaller carbon footprint while promoting energy efficiency.
Together, these features position modern self-storage facilities as both secure and environmentally responsible options for customers seeking convenient and reliable storage solutions.
Childcare in New Jersey
While our primary focus is the conversion of underutilized property into self-storage, Global Storage Partners also wanted to address the lack of childcare in Burlington County. Unlike the fierce grocer competition, there is simply not enough affordable early childhood care in the United States. In 2019, when this property was being developed, Burlington County was the 6th most expensive for childcare out of 21 New Jersey counties, with a $14,592/year median cost. In order to bring value to the community, part of the undertaking of this project was to build a childcare facility on what was originally the parking area of the acquired parcel.
Global Cinnaminson's dedication to community development is exemplified by the development of a Children of America (COA) Daycare on our property. Since 2021, this innovative project has filled the gap in quality preschool, childcare, and after-school programs, supporting families and fostering the growth of the community. The grand opening of the COA Daycare was met with excitement from Burlington County Commissioner Deputy Director Dan O'Connell and garnered enthusiastic feedback from community members, reinforcing the positive impact on the local area.
"Burlington county was the 6th most expensive for childcare out of 21 New Jersey counties."
A REIFs Impact on Cinnaminson, NJ
The total property was purchased for approximately $2.5 million and was subdivided into four parcels. The first parcel, still under ownership, was converted to the Extra Space self-storage facility. Three additional parcels were carved out and sold to create childcare and dining options.
• Parcel 1: The old Acme Markets building and its surrounding storefronts were converted into the 93,117 square foot indoor climate-controlled self-storage facility.
• Parcel 2: The second parcel was developed into the two-story daycare and early childcare facility, under a long-term lease with Children of America, a rapidly-growing national daycare.
• Parcel 3: This parcel was sold to create a Freddy's Frozen Custard & Steakburgers location, with a projected opening in September 2024.
• Parcel 4: The final parcel is in negotiation to sell to a national Mexican food restaurant.
The strategic subdivision and sale of these parcels can be cited as a revival for this shopping center, bringing new foot traffic to the K1 Racing and Hibachi Grill right next door. By establishing new businesses and services, this building got a second chance at life instead of being left in disrepair. This needs-based redevelopment strategy showcases our forward-thinking approach to transforming underutilized properties into valuable community assets.
Creating modern self-storage layouts that our partners love.
Why The Global Storage Process Works
The conversion of a vacant grocery store in Cinnaminson, New Jersey, by Global Storage Partners stands as a testament to our commitment to community revitalization, investor returns, and environmental responsibility. By transforming a long-abandoned property into a modern self-storage facility with advanced security features and sustainable practices, we have successfully addressed a pressing need in the local market while promoting eco-friendly solutions.
The addition of a childcare facility and new dining options further underscores our holistic approach to development, enhancing the community’s amenities and supporting local families. This project not only revitalized a once-dormant area but also provided positive returns for our investors, demonstrating the viability and profitability of investing in self-storage conversions.
Despite challenges frequently faced in the commercial real estate market, investing in self-storage units continues to be a profitable venture for seasoned real estate fund managers.
As we continue to identify and transform underutilized properties, our mission remains clear: to create thriving, multi-functional spaces that benefit all stakeholders and contribute positively to the community and environment.
To learn more or inquire about investing, contact our SVP of Capital Markets.
