Transactions and Deals: February 10, 2020
posted on 2/10/2020 6:53:00 AM
The BSC Group closes financing in Arizona, Georgia
Chicago-based commercial real estate financing firm The BSC Group closed the following transactions:
A $5 million CMBS loan used to refinance a self storage property in Chandler, Arizona. The borrower capitalized on the aggressive lending environment by locking in a 10-year, fixed-rate, nonrecourse loan with a low interest rate in the mid 3’s percent. The full-term interest-only loan was underwritten at ~60% loan to value and will insulate the sponsors from interest rate risk, as well as provide enhanced cash flow from the investment for the next decade.
A $5.8 million CMBS loan used to refinance a two-property self storage portfolio located in Commerce, Georgia. The 10-year fixed-rate loan included three years of interest-only payments and an interest rate below 4%. Aggressive underwriting provided significant cash-out to the borrower at closing and notably an abbreviated look-back period used to determine the lender’s underwritten NOI. Additionally, this transaction was unique in that one of the assets was acquired in 2017 the other in 2019, yet the lender was able to provide loan proceeds in excess of 100% of cost.
A $2.25 million CMBS loan used to refinance a purpose-built boat and RV storage facility in suburban Phoenix, Arizona. The ~500 spot parking facility was recently expanded. The new, non-recourse loan was structured with a 10-year fixed-rate term and a 30-year amortization, removing the borrower from the recourse obligation associated with his existing SBA debt.
Catalyst secures loan for Seattle property
Catalyst Storage Investors secured a $13.8 million permanent loan through Talonvest Capital, Inc., for a facility it developed in 2014 in Seattle, Washington.
The facility features 851 climate-controlled units and 64,689 net rentable square feet. The property is located 3.5 miles southeast of Downtown Seattle at 3736 Ranier Avenue South.
The non-recourse, 10-year, fixed rate, full-term interest rate loan was funded by a CMBS lender.
The Talonvest team responsible for this assignment included Kim Bishop, Jim Davies, Tom Sherlock, David DiRienzo, and Lauren Maehler.
South Carolina operator hires ASM for new location
SAD Management LLC, has opened a new location named Pelham Road Self Storage in Greenville, South Carolina. General contractor Griffco Design/Build, Inc. constructed the facility at 345 Pelham Road. It is comprised of 61,350 square feet of rentable storage space in 687 units.
Absolute Storage Management will provide management.
Public Storage founder honored by equine industry
B. Wayne Hughes Sr., the co-founder of Public Storage Inc., is receiving the 2019 John W. Galbreath Award for outstanding entrepreneurship in the equine industry by the University of Louisville College of Business equine-industry program. With interests in horse racing, Hughes has owned Spendthrift Farm in Lexington, Kentucky, since 2004.
Hughes is credited with creating popular programs to encourage horse ownership and breeding. The Galbreath Award has been given annually since 1990 to honor entrepreneurial leadership and positive impact on the equine industry. Hughes will be honored during a dinner and award presentation on March 2 at the PNC Club inside the university’s football stadium.
Hughes and business partner Kenneth Volk Jr. opened their first Public Storage location in 1972. Hughes stepped down as company chair in 2011. Based in Glendale, Calif., Public Storage has interests in 2,468 self storage facilities in 38 states, with approximately 167 million net rentable square feet.
U-Haul opens 450 units in Ohio
U-Haul Storage has opened 450 self storage units at its new location at 2436 N. Verity Parkway in Middletown, Ohio. The location was formerly the site of an auto dealership, according to the Journal-News.
The acquisition was part of U-Haul’s corporate sustainability initiatives to support infill developments to help local communities lower their carbon footprint.
Marcus & Millichap brokers in Tennessee, Texas, Wyoming
Marcus & Millichap has brokered the following deals:
The Hatcher Group of Marcus & Millichap closed La Follette Storage in La Follette, Tennessee. La Follette Storage is 31,624 net rentable square feet with 250 units. It’s located on 2.36 acres. La Follette Storage offers the only climate-controlled units in the town, located 30 miles north of Knoxville. Gabriel Coe and Brett Hatcher, first vice president investments, brokered the deal. Jody McKibben was the broker of record.
The LeClaire Group brokered the sale of Right Move Storage, a 126,985 square foot storage facility located in Fort Worth, Texas. Dave Knobler, first vice president investments, and Charles "Chico" LeClaire, executive managing director investments, and Danny Cunningham, first vice president investments, and Brandon Karr, senior vice president investments, had the exclusive listing to market the property on behalf of the seller. The team of Knobler, LeClaire, Cunningham, and Karr also procured the buyer, Colorado-based Spartan Investment Group. Right Move Storage is an institutional-quality facility on 2.63 acres in Fort Worth, Texas. The property, previously a two-story Macy’s Department Store operating in Ridgmar Mall, was converted into a self storage facility in 2019. The facility has 1,070 interior climate-controlled units.
The LeClaire Group of Marcus & Millichap brokered the sale of AAA Self Storage, a 74,750 square foot storage facility located in Cheyenne, Wyoming. The property sold for $8 million. Adam Schlosser, senior vice president investments, Charles "Chico" LeClaire, executive managing director investments, and Neville Rustomjee, Wyoming broker of record, in the Denver, Colorado office, had the exclusive listing to market the property on behalf of the seller, a local investor. AAA Self Storage consists of 517 drive-up units and 103 rentable outdoor parking spaces. The facility is located on 200 South College Drive on the southeast side of the Cheyenne market.
S3 Storage building in Charlotte
S3 Storage Solution LLC, a family-owned self storage development company, is under construction on a 90,000-square-foot, 610-unit facility in Charlotte, North Carolina. The facility, to be branded The Storage Haven, is at 10023 Callabridge Court. It will feature climate-controlled and drive-up units, as well as boat and RV parking. Fourth Elm Construction LLC is the general contractor. Construction is expected to be completed in June.
Devon enters Cincinnati market
Devon Self Storage has entered the Cincinnati, Ohio, market with a third-party property management contract for a newly constructed Class A facility. The property is branded as Devon Self Storage Cincinnati.
The site offers over 300 climate-controlled storage units by the 6th St. Expressway, and it will open in early February.
Later this year, Devon expects to open new projects in Orlando, Florida, and Grand Rapids, Michigan.
SSTIV buys new facility in suburban San Diego
Strategic Storage Trust IV, Inc., acquired a newly constructed, 1,150-unit self storage facility in Escondido, California, a suburb of San Diego.
Located at 852 Metcalf Street, the facility is comprised of 96,500 square feet on 1.13 acres. The facility was constructed during 2019 and completed in 2020.
SST IV is a public non-traded REIT that owns 23 self storage facilities.
Storage disruptor Neighbor gets funding
A startup called Neighbor which operates a peer-to-peer self storage platform has secured $10 million in funding.
The Lehi, Utah-based company’s investors include Uber’s first CEO, Ryan Graves.
Neighbor’s approach is to turn spare garages, basements and sheds into rentable self storage units.
10 Federal has raised $15.9 million
Raleigh, North Carolina-based 10 Federal admitted another round of equity to the 10 Federal Self Storage Acquisition Company 2, LLC. The offering brings total capital raised to $15,900,000 of the offering's $30 million goal. These proceeds were immediately deployed to acquire the 4-property Capitol Storage portfolio in Springfield, Illinois. The fund also acquired 10 Federal's first asset in the Dallas, Texas market, which is a market 10 Federal is seeking to expand within quickly. 10FSSAC2's portfolio now consists of 13 self storage assets.
Both 10 Federal Self Storage Acquisition Company 1, LLC & 10 Federal Self Storage Acquisition Company 2, LLC announced an 8% annualized distribution for the period ending December 31, 2019.
Midcoast Properties hires Moss for storage sales
Self storage real estate firm Midcoast Properties Inc. has hired Bobby Moss as a new associate. Moss’s commercial real estate experience includes a focus on self storage and manufactured-housing communities.
Moss is a licensed real estate professional in Alabama, the Carolinas and Georgia.
Midcoast provides brokerage services to self storage investors and owners in Alabama, the Carolinas and Georgia.
StorQuest opens new facility in Sacramento
StorQuest Self Storage has opened a new facility in downtown Sacramento, California’s revitalized Broadway district. The area is located off the I-5 freeway and I-80 interchange at 2415 3rd Street.
StorQuest Self Storage is owned by The William Warren Group Inc.
Another Minnesota town limits storage
The New Hope, Minnesota, City Council has changed an ordinance so self storage developments are now only allowed in business warehouse districts, according to CCX Media. Previously, self storage developments were allowed in commercial and industrial zones.
Council members cited low employment levels in self storage as the reason for the change.
New Hope is a suburb of Minneapolis with about 21,000 residents.
Talonvest promotes Pryor
Boutique self storage and commercial real estate advisor Talonvest has promoted Erich Pryor to senior relationship manager within the firm. “Erich’s efforts to expand the firm’s capital relationships and his impact in the structuring and negotiating of capital on behalf of clients for commercial and storage properties continues to grow.” noted Talonvest Principal Tom Sherlock.
Extra Space Storage hits solar milestone
Extra Space Storage Inc. has surpassed 100 solar-panel projects with partner Safari Energy. The companies have installed panels on Extra Space facilities across 13 states. Together the systems have produced more than 33 gigawatt hours of solar power, which is equal to offsetting emissions from 5,000 vehicles in a year.
The largest of the installations is a 531-kilowatt rooftop system in Central Valley, New York. Safari Energy has worked with Extra Space for the past six years on solar projects across the country.
Extra Space has invested in solar energy at 23 locations in Colorado and Illinois with partner Pivot Energy.
Aberdeen plans Arizona storage construction
Developer Aberdeen Management & Development, LLC is requesting a conditional use permit and rezoning to build a self storage facility on 9 acres in Queen Creek, Arizona, according to YourValley.net.
QC Self Storage would be constructed on the corner of Germann Road and 196th Street. The project would include 20,915 square feet climate-controlled storage and two RV canopies totaling more than 40,000 square feet.
NSA’s Fischer named to Duke Realty board
Duke Realty Corporation in Indianapolis, Indiana, has appointed Tamara Fischer to its board of directors. Fischer serves as president and chief executive officer of National Storage Affiliates Trust. Fischer joined NSA at its inception in 2013 and served as its executive vice president and chief financial officer from 2013 until 2018. She has served as president and chief financial officer since 2018.
Fischer is a certified public accountant. She graduated from Case Western Reserve University with a bachelor of arts in business administration.
Rockport refinances with Aries Capital
Aries Capital, LLC has closed a $3.15 million, non-recourse, CMBS permanent loan for the refinance of two self storage facilities in Florida for Rockport Self Storage. Woodbine Storage is located at 5515 Woodbine Road in Pace, Florida and EZ-IN Storage is at 633 South Tyndall Parkway in Panama City, Florida. The exterior, garden-style facilities have a combined total of 447 units.
Vice president and national originator Brandon Perdeck from the firm’s Miami office handled the transaction.
The California borrower used the new 10-year fixed rate loan with 30-year amortization and 70% loan-to-value ratio to refinance an existing, higher-rate SBA loan. The new CMBS financing allowed the sponsor to refinance into a much more attractively priced loan, remove recourse and take cash out.
Aries Capital, LLC is a full-service, commercial mortgage and real estate investment banking firm headquartered in Chicago.
Beyond Self Storage partners with charity
Beyond Self Storage has formed a partnership with Lemons of Love, a Chicago based non-profit established to provide support and community to those impacted by cancer.
In January, Beyond Self Storage held its first Charity Storage auction, with 60% of the proceeds going to Lemons of Love. Charity Storage helps to bridge the gap between storage facilities and non-profits by working with Storage Treasures, an online self-storage auction directory. Customers of Beyond are able to bring in their new and gently used items they no longer have a need for and place within the “Lemons of Love Unit.” When the unit is full of items and ready to go to auction, the Beyond team ensures the photos are posted on Storage Treasures and promote the sale of the unit’s contents to members of the community and their customers.
Lemons of Love was founded in 2014. The charity ships chemo care packages nationwide and offers programming at its Resource Center in Mt Prospect, Illinois.
Tags: BSC Group
, Catalyst Storage Investors
, Absolute Storage Management
, B. Wayne Hughes
, Marcus & Millichap
, The Storage Haven
, Devon Self Storage
, Strategic Storage Trust
, 10 Federal
, Midcoast Properties
, Safari Energy
, Aries Capital
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