Author: Alison DeJaeger

504 Loan Structuring

With the current rising interest rate environment, now is a good time to lock in debt for as long as possible. One option is the SBA 504 program where anywhere from 35-40% of the loan package has a 25-year fixed rate. The maximum amount from the CDC/SBA 25-year rate is $5 million (unless you pursue the “Green” program when it would become $5.5 million). The bank who holds onto the first mortgage can go up as high as they are comfortable with allowing borrowers to receive loans in the $15-$20…

Augusta Considers New Use for Former Kmart Building as Demand for Self Storage Rises

An increasing demand for places to stow personal items and equipment is driving a proposal to convert the vacant former Kmart building, and its parking lot, on Western Avenue into self storage space. The effort is part of a larger trend of repurposing large box stores that were driven out of business into storage facilities. I appreciate the concept, I think repurposing these types of large box retail spaces — since retail is being done differently these days, thank you Amazon — is something that needs to be done.” Several…

Recent Closings: 5.24.2022 – 5.30.2022

Property: Public Storage (Managed) Location: Birmingham, AL Broker and Brokerage: Ashley Compton of Colliers Self Storage Group NRSF: 102,292 Unit Count: 834 Acreage: 8.82 Properties: Two Development Sites Closing Price: $4.9 Million Location: Winston-Salem, NC Buyer: SROA Acreage: 5.2 Property: Storage and Retail Property Closing Price: $3.9 Million Location: Frederick, VA Buyer: Frederick Pike Holdings, LLC. Broker and Brokerage: Jamie A. Scully of Cushman & Wakefield NRSF: 27,000 (Storage) and 21,322 (Retail) Property: My Space Indoor Storage and Retail Location: South Bend, IN Brokers and Brokerage: Hunter Sells, Scott Schoettlin…

$5 Million Self Storage Facility Coming to Lansing, MI

The incoming owners of property currently occupied by Zap Zone, an indoor amusement center, have plans to invest more than $5 million to turn the existing building and space around it into a large self storage facility with space for recreational vehicle parking. As that project moves ahead, Zap Zone will leave the building on Mall Drive East and move to a now-vacant building in the Lansing Mall, said Jacob Rosberg, an associate with Cohn Commercial Properties. The agency is representing Zap Zone in the sale of its current building,…

Construction on 1,562 Self Storage Units Underway in South Texas

A partnership between San Antonio-based Bakke Development Corp. and Batson-Cook Development will, together, work on two separate self storage facilities. The two projects, one in Brownsville and the other in McAllen, are mirror-images of each other. They will both comprise 781 units and 87,000 feet of rentable space. Alamo Architects is the architect for both facilities and Independent Contractors Inc. is the general contractor. Both projects are expected to be completed by the middle of next year. Source

Talonvest Secures $109.7 Million Loan for Ten-Property Portfolio

Talonvest Capital, Inc. and its client Reliant Real Estate Management along with their joint venture partner Harrison Street Real Estate are pleased to announce the funding of a $109,700,000 bridge loan secured by a ten-property self storage portfolio. The properties, located in GA, SC and CO, have a combined 876,021 of existing net rentable square feet plus 811 parking spaces. The loan will also fund a total of 110,275 square feet of expansion at five of the facilities. Talonvest was instrumental in providing, negotiating and delivering attractive senior debt. The…

1784 Capital Secures $25M Loan for Annapolis Storage Project

1784 Capital Holdings LLC has landed $24.9 million in construction financing for the development of Annapolis Self Storage, a 751-unit facility in Annapolis, Md. Talonvest Capital arranged the loan, funded by ACRES Capital Corp. Managing Director James Bracco of the company’s Miami office originated the financing. The current deal completes a previous $3 million loan funded by Revere Capital Debt Funds and another $3.3 million loan provided by West Bay Capital. The development will span seven acres and will comprise a six-story Class A building and 71,360 net rentable square…

Recent Closings: 5.17.2022 – 5.23.2022

Property: Secure Storage Location: Richfield, NC Brokers and Brokerage: Nathan Coe, Brett Hatcher and Gabriel Coe of the Hatcher-Coe Group of Marcus & Millichap NRSF: 37,800 Unit Count: 262 Non-Climate Controlled Units Acreage: 6.42 Room for Expansion: Yes Year Built: 2018/2021 Highlights: Charlotte MSA Self Storage Facility Added New Units In December 2021 and Leased Up Extremely Fast Growing Surrounding Population Property: Elite Motorcoach Storage Location: Sarasota, FL Brokers and Brokerage: Gail Bowden of SVN Commercial Advisory Group NRSF: 14,000 Acreage: 5.56 Highlights: Hurricane-Proof Building 24-Hour Security Water Disposal Property: Vault…

It’s Still a Good Time to Borrow

Unless you’ve been hiding under a rock for most of 2022, you know that interest rates are on the rise. The best barometers for commercial real estate interest rates are US Treasuries and LIBOR/SOFR. They are the indices most lenders use to price their loans. Since December 2021, the 10-Year benchmark index has risen over 150 basis points to 2.96% as of May 17, 2022. To be sure, this more than doubling of treasury rates over five months has led to disruption in the market and caused lenders to revisit…

Rising Interest Rates and Inflation – What Does This Mean for the Sector?

In an environment with rising interest rates and inflation, the U.S. real estate market should prove resilient in sectors with pricing power, strong demand and shorter lease terms, which, have historically performed well. Real estate is an ideal place to park capital in stagflation environments, except where markets are oversupplied and lose pricing power. Fortunately, the self storage sector isn’t oversupplied. Development activity in 2021 for self storage fell from activity levels in 2019, with $3.5 billion versus 2019’s $5.0 billion. REITs do not anticipate significant supply challenges this year.…