Category: Finance News

Newmark Arranges $360M Financing For Self Storage Portfolio

Newmark Group Inc has arranged $360 million in financing for a 50-asset, 3.9 million-square-foot national self storage portfolio on behalf of Angelo Gordon and Andover Properties. Critical to the success of this transaction was the strength of sponsorship between Andover, with its Storage King USA operating platform and Angelo Gordon, with its deep sector experience and large equity commitment to the portfolio.” It added that the portfolio is well-leased and located in strong primary markets and submarkets across the country. The team that closed the debt was led by Vice-Chairmen and Co-Heads of…

Mini Mall Storage Properties Secures $72 Million Acquisition Loan from HIG

HIG Capital’s real estate debt arm has provided a $72m (€70.7m) loan to assist North American self-storage firm Mini Mall Storage Properties to buy a 5,000-unit portfolio. HIG Realty Credit Partners has originated the loan to assist in the acquisition of the self-storage portfolio located in three states across the Southeast US. Michael Mestel, managing director at HIG Realty Credit Partners, said: “We are excited about this unique opportunity to finance an asset class with such strong fundamentals.” Adam Villard, CEO at Mini Mall Storage Properties, said: “We are pleased to partner…

Custom RV Storage, Park Planned Near Yucca

This is from Riverbound in Havasu Heights. Canyonbound, planned on I-40 near Yucca, is modeled after the Havasu development. The company that developed Riverbound Custom Storage & RV Park in Havasu Heights is planning a similar project along I-40 near Yucca – but this one will include a professional-quality motocross facility. Canyonbound Storage Management recently purchased about 102.8 acres located near the Chrysler Proving Grounds – just south of Area 66 on the interstate – from Las Vegas-based companies AZPrime and Mojave HM for $2.5 million. The property is south…

Self Storage Project in Branchburg, New Jersey

Arthur’s Self Storage, a new facility in Branchburg, New Jersey, by Cyzner Properties, will feature RV/boat storage space and a 4,000-square-foot specialized wine storage cave designed for restaurants and caterers. Progress Capital has arranged a $23 million construction loan for a 1,000-unit self storage project in Branchburg, about 50 miles west of New York City. The site, which is also zoned to support the future development of 160 multifamily units, will house three two-story buildings with units of varying sizes. Kathy Anderson and Caillin Boles of Progress Capital arranged the…

Newmark Facilitates $170 Million Financing for Centerbridge Partners and Merit Hill Capital’s Self Storage Portfolio

Newmark Group, Inc. (Nasdaq: NMRK) (Newmark) has arranged the $170 million financing of a 33-asset, 1.8 million-square-foot national self storage portfolio on behalf of Centerbridge Partners and Merit Hill Capital. The portfolio is well-leased and located in strong primary markets and submarkets across 16 states. The properties are third-party managed by a combination of CubeSmart and Extra Space, broadly considered among the top operators in the self storage sector. Merit Hill Capital’s ability to source deals locally and bring them to institutional standards speaks to their deep knowledge of local…

Northern New Jersey Self Storage Asset Refinanced with $12 Million Loan

JLL Capital Markets announced today that it has arranged a $12 million refinancing for 10 Van Buren Avenue, an 830-unit, climate-controlled, self storage facility in the Northern New Jersey community of Westwood. JLL worked exclusively on behalf of the borrower, Maxim Realty Trust, to place the 10-year, fixed-rate loan with Lakeland Bank. Lakeland Bank, recognizing the strength of the asset and the sponsor, provided a competitive 10-year, fixed-rate permanent mortgage to take out the initial construction loan as the property reached stabilization.” The self storage facility was constructed in 2017…

Parkview Financial Originates $18.3 Million Construction Loan for Development of a Class A 949-Unit CubeSmart Self Storage Facility in Yonkers, NY

Parkview Financial announced today it has provided an $18.3 million construction loan to KCT, Inc. for the development of a Class A, 949-unit self-storage facility located at 1060 Nepperhan Avenue in Yonkers, NY. KCT plans to demolish the existing 9,820 square-foot (sf) industrial building where it had operated its business, Health Products Corp. since 1973, and will build an eight-story building with 77,000-square feet of rentable space on the .55-acre lot. Parkview Financial saw this as a favorable opportunity to finance a high-quality self storage facility in Yonkers, a New…

Current State of the Market

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…

SBA 504 Program Appraisal Rule Change

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…