Preparing Your Storage Operation for What Comes Next

With yet another summer leasing season underway, the self storage industry is off to a solid start. A recent report from Storable showed that operators started leasing season in May with record high rental rates, with an average monthly unit price of $111.31 per square foot. Rates continued to rise through June reaching $115.88 per month average for all unit types. Operators started the leasing season with record high occupancy as well. The report found a healthy rate of churn through May and June, suggesting that tenant demand is holding…

Aztec Group Arranges $23 Million Refinancing for Self Storage Facility in South Florida

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

Recent Closings: 7.12.2022 – 7.18.2022

Portfolio: Nicol Investment Company’s Self Storage Portfolio Closing Price: $102 Million Locations: Franklin, Hendersonville, Nashville and Two Facilities in Murfreesboro, TN Brokers and Brokerage: Ashley Compton of Colliers Self Storage Group Buyer: Hines Global Income Trust NRSF: 341,202 and 13,445 of Retail Space Unit Count: 3,204 Climate-Controlled Units Details: Carothers – 697-unit, 71,925 net RSF of storage on Carothers Parkway in Franklin, TN Hendersonville – 599-unit, 67,893 RSF of storage with 9,545 SF of 4 ground-floor retail suites on Saundersville Road in Hendersonville, TN Murfreesboro – 577-unit, 67,315 net RSF…

Environmental Report Requirements for SBA Loans

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…

Invesco Real Estate Income Trust Inc. Acquires Two Self Storage Portfolios

Invesco Real Estate Income Trust Inc. (“INREIT”), an institutionally managed, public non-listed REIT, announced today two self storage portfolio acquisitions consisting of five properties located in Bend, Oregon and Clarksville, Tennessee. The combined purchase price was $42 million, bringing INREIT’s self storage portfolio to over $128 million. “Self storage continues to be a strategic sector for INREIT given the ability to increase cash flow relatively quickly,” said R. Scott Dennis, President and Chief Executive Officer for INREIT. “These properties exhibit strong demand and are well-located in their respective markets. We…

Aries Capital Closes $46 Million in Self Storage Financing in CA, CO, FL and TX

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.,…

Criterion Sells LIC Self Storage for $80 Million

A few years after Shibber Khan’s Criterion Group first explored selling a Long Island City site on Northern Boulevard, the firm has finally executed a deal. Criterion sold the commercial unit at 31-08 Northern Boulevard to the Carlyle Group for $80 million, public records show. The commercial condo unit spans 180,000 square feet, occupying part of the building’s first floor and the entirety of the remaining floors. The Queens-based development firm bought the development site in 2015 from investor Joel Gluck for $40 million, planning to hold on to it…

Recent Closings: 7.5.2022 – 7.11.2022

Property: Public Storage (Managed) Location: Spring Hill, TN Brokers and Brokerage: Brett Hatcher, Nathan Coe and Gabriel Coe of the Hatcher-Coe Group of Marcus & Millichap NRSF: 53,690 Unit Count: 487 Climate Controlled Units and 21 Parking Spaces Highlights: Newly Built, Class A, All Climate Controlled Self Storage Facility Opened in 2018 Excellent Visibility and Street Frontage off US Route 31 Convenient Location and Easily Accessible High Daily Traffic Counts: 14,000 Cars/Day Rapidly Growing Surrounding Population: 344% Increase within in a Five Mile Radius Since 2000 Affluent Market: Average Household…

Storage Post Secures $33.2 Million in Financing for Staten Island Self Storage Facility

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…

What Is an Interest Rate Cap and Why May I Need One?

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…