Prime Group Holdings is expected to receive a $505 million commercial mortgage loan for a 32-property self-storage portfolio and two mixed-use properties, located across 14 states and one U.S. territory, according to Fitch Ratings. The ownership will also receive a $70 million mezzanine loan in the same transaction.
Citi Real Estate Funding Inc. and Goldman Sachs Bank USA will issue the five-year, fixed-rate note. The deal is scheduled to close next week, on Oct. 17.
The loan will retire an existing $482.4 million debt, as well as pay closing costs of approximately $14.2 million and repatriate $78.4 million in equity to Prime Group. Wilmington Savings Fund Society will serve as trustee in the deal, while Citibank will be certificate administrator.
Out of the total number of assets, five properties are in Massachusetts, seven are in North Carolina and two in Florida. The facilities are located in densely populated infill areas.
The present transaction comes not long after Prime Group secured a $156 million refinancing loan for a three-property self storage portfolio in New York City. The collection comprises more than 7,200 units across three boroughs.
Self Storage Loses Momentum
August saw advertised street rates rise 0.3 percent year-over-year to $16.91 per square foot, but down 0.2 percent from the previous month, according to the latest report. The national pipeline also contracted, with properties under construction accounting for 2.7 percent of total stock, a 10-basis-point decrease from July.
