Category: Finance News

Well, most kids are back in school and summer vacations have come and gone. It is time to get back to work and down to business. First, let’s touch on the economy. Many experts believe we have hit peak inflation and certainly the trend is moderating. The long-term impact on CRE remains to be seen, but the unique attributes of self storage assets (short-term leases, non-concentrated rent roll, etc.) should continue to prove beneficial compared to other sectors. It’s one more reason institutional investors find the self storage business an…

On July 29, 2022 the Small Business Administration (SBA) released SBA Procedural Notice 5000-835230, revising procedures relating to commercial real estate appraisals that CDCs must submit to the Sacramento Loan Processing Center (SPLC) for approval. Under current SBA procedures, if the appraisal that CDCs must submit for approval to the SLPC is less than 95% of the estimated value of the commercial real estate, the debenture (the 25-year fixed rate loan) must be reduced or the CDC must secure additional collateral or additional investment from the borrower and/or guarantors. SBA…

Private equity behemoth Blackstone has taken out a $2.73 billion loan to finance its acquisition of PS Business Parks, public mortgage documents show. Blackstone, one of the country’s largest investment managers, paid $7.6 billion earlier this month for the Glendale, Calif.-based REIT whose portfolio spans 93 properties, serving approximately 4,800 tenants in 27 million square feet of space as of June. The national portfolio includes a range of industrial, office and flex properties in California, Texas, Northern Virginia and Miami, among other places. Nearly a quarter of the properties, 24…

Aztec Group has arranged the $23 million refinancing of a five-story, climate-controlled self storage facility in the Miami suburb of Aventura. Glendale, California-based self storage operator Public Storage operates the property. Built in 2018, the facility offers 84,000 square feet of rentable space across 946 units. Jason Shapiro and Charles Penan of Aztec Group arranged the loan through the direct lender, an affiliate of Miami-based 3650 REIT, on behalf of the borrower, South Florida-based America’s Capital Partners. The nonrecourse, fixed-rate loan will be interest-only for the full 10-year term. Source

In order to qualify for the SBA’s guaranty for 7a and 504 loans, the SBA requires certain levels of environmental due diligence be performed to provide assurance that the property site value is not hampered by previous contamination or environmental degradation. Reasons for diminished property site value may include: The costs of remediation could impair the borrower’s ability to repay the loan and/or continue to operate the business The value and marketability of the property could be diminished Lender or SBA could be liable for environmental clean-up costs and third-party…

Aries Capital of Chicago has closed $46 million in construction, bridge and permanent debt financing for over 414,000 square feet of new and existing self storage facilities in California, Colorado, Florida and Texas. The financing was arranged on behalf of three separate clients by Aries Capital Director of Capital Markets Brandon Perdeck, Director of Acquisitions Matt Carney and Assistant Vice President Steve Adams. The transactions include a $17.5 million construction loan for a self storage facility in Santa Clarita, California for Diamond Development Partners, a unit of Salazar Construction Co.,…

JLL Capital Markets announced today that it has arranged $33.2 million in financing for Storage Post’s new 2,388-unit self storage facility located at 620 Richmond Terr. in Staten Island, New York. JLL worked on behalf of the borrower, Storage Post Self Storage, to secure $33.2 million loan through SoundPoint Capital, an alternative asset management firm based in New York with $28.9 billion of assets under management. Storage Post acquired the brand-new, four-story facility as part of its rapid growth in 2022. Located in the North Shore of Staten Island, the…

In order to protect from runaway interest rate risk, lenders often require borrowers to purchase interest rate caps at the time of loan origination to set the maximum interest rate that can be charged on variable rate loans. These caps have historically been at a moderate cost and seldomly triggered, as rates had not trended up in some time. But that changed in the first half of 2022, as interest rates increased dramatically and expectations are for this development to continue for the foreseeable future. As a result, the cost…