California Self-Storage Properties
June 9, 2021
Tom Dao secured the loans on behalf of two separate clients after a review of relevant lender options meeting each borrower’s financing objectives.
San Francisco, Calif. (June 11, 2021) – Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured $20.1 million of new financing for two separately owned self-storage assets in unique transactions. The selection of a Life Company lender and a CMBS structure by respective clients reflect the role of Gantry’s commercial mortgage production leaders in identifying the best form of finance for distinct operating imperatives and goals.
Gantry’s Tom Dao, senior director with the firm’s San Francisco production office, secured the loans on behalf of two separate clients after a review of relevant lender options meeting each borrower’s financing objectives. The transactions and selected loans include:
Solano County: Gantry secured $12.6 million of long-term permanent financing for Self Storage of Vacaville, a 909-unit property delivered in 2018. The loan was placed with one of Gantry’s correspondent Life Company lenders and features a earn out option that allows the borrower to receive additional loan proceeds in anticipation of the property’s increasing net operating income meeting defined revenue targets.
Contra Costa County: Gantry structured and secured $7.5 million in CMBS financing for a 610-unit, StorQuest managed facility completed in 2018 and located in the city of Brentwood. The loan features a 30-year term with a full-term, interest-only payment option that lowers the borrower’s monthly payment compared to a traditional amortizing loan structure.
According to Gantry’s Tom Dao, “Gantry’s role in the commercial mortgage arena is to pair client objectives with the best available financing option. With these transactions, as with every client assignment, each asset sponsor had different goals following post-construction stabilization. CMBS offered a payment structure for client focused on cash flow. Life company lenders offer underwriting and structure flexibility that awards improving financial performance. Now that self-storage assets have achieved institutional recognition as a viable asset class offering steady performance in both down and up cycle markets, we at Gantry have become experts in sorting options and underwriting to relevant lender standards to meet client’s exact needs.”