A partnership between Rialto Capital Management and YourStorageUnits has secured $140 million in revolving credit for seven recently built self storage properties—which include a total of 5,000 units—in Florida, Georgia and South Carolina, as well as other storage assets that are currently under construction. Natixis Corporate & Investment Banking provided the credit facility.
Rialto paid a combined $42.8 million to Delta Capital Management for four of the assets. The portfolio transaction includes a 111,150-square-foot self storage property in Panama City Beach, Fla., a 104,562-square-foot asset in Kissimmee, Fla., a 101,250-square-foot storage facility in Saint Cloud, Fla., and another 98,300-square-foot property in Aiken, S.C. The facilities encompass a mix of non-climate and climate-controlled units with drive-up access and security features.
The properties are in largely penetrated areas at 7100 W. Highway 98, 2965 N. Orange Blossom Trail, 2335 Old Canoe Creek Road and 1573 Hamilton Drive, respectively, providing residents between 7.3 and 14.1 net rentable square feet per capita, above the 7.1 national average.
The self storage market in the Sun Belt region is benefiting from migration to suburban and smaller areas, which is positively affecting the development pipeline and transaction volumes.
