Self Storage Portfolio
Newport Beach, CA
July 26, 2021
“Gantry has developed a tremendous expertise in the self-storage financing space. Specifically, through our correspondent life insurance company lender relationships we have been able to tailor optimal debt structures for self-storage properties in various phases of the development life cycle.”
Newport Beach, Calif. (July 28, 2021) – Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured $120 million of new commercial mortgages in four transactions across nine self-storage assets. Permanent loan solutions were tailored to each asset, which were each unique in their phase of construction, redevelopment or stabilization. The individual transactions include a major expansion of an existing facility, two construction loan take-outs at Certificate of Occupancy, and a multi-state portfolio of six new construction or recently acquired properties in various phases of lease-up and value add strategies.
Andy Bratt, Principal, and Amit Tyagi, Senior Director, with Gantry’s Newport Beach and Los Angeles production offices, respectively, placed the loans after evaluating each sponsor’s operational goals against a wide range of viable capital sources. Gantry’s Spencer Seibring, Production Associate, assisted in all transactions. All the loans were funded through Gantry correspondent life insurance company lending institutions.
According to Gantry’s Andy Bratt, “Gantry has developed a tremendous expertise in the self-storage financing space. Specifically, through our correspondent life insurance company lender relationships we have been able to tailor optimal debt structures for self-storage properties in various phases of the development life cycle. We continue to see a particularly strong appetite for allocations to this asset class from our key correspondent lenders. We have been successful in working with our Life Insurance Companies to craft permanent loan solutions for pre-stabilized self-storage facilities, which have historically required a bridge loan product. Our team of producers has secured very favorable loans for self-storage properties during the first half of 2021, meeting the needs of projects in the development, lease up and stabilized operational phases. We are well versed in identifying and clearly articulating the underwriting required by our top-tier capital sources for this maturing asset class. Our activity in the asset class, key lender relationships and seasoned production teams are establishing a new market for lending in the storage space. Our Borrowers have been thrilled. “
Transaction highlights include:
Trojan Self Storage Portfolio: Gantry secured a total of $59.06 million of permanent financing for six recently developed and/or newly acquired Trojan-branded self-storage properties totaling 4,332-units located across California, Oregon and Washington. Highlights include a sub-3% long term fixed rate and interest-only introductory periods across each individual loan.
Nova Storage: Gantry secured $24 million of permanent financing for a three-story, 950-unit self-storage facility in Greater Los Angeles, CA. The existing facility is stabilized, and the property is currently undergoing a strategic expansion, with construction set for completion in Q2 2022. Highlights include a long-term fixed rate perm loan that provided take out financing on the existing asset as well as providing funds for the expansion of the facility. The loan has an initial funding for the stabilized portion of the facility and construction financing; with an earn out available upon stabilization of expansion as “good news money”.
Scottsdale Self Storage/StorAmerica: Gantry secured $23 million of permanent financing for a recently developed 923-unit self-storage facility in Scottsdale, Arizona. Highlights include a sub-3% rate, interest-only introductory period transitioning to 30-year amortization, and a seven-year term.
Surprise SelfStorage/StorAmerica: Gantry secured a $15 million of permanent financing for a 478-unit self-storage facility in Surprise, Arizona. Debt includes partial funding for an additional 228-units now under construction. Highlights include a sub-3% rate, interest only introductory period transitioning to 30-year amortization, and a seven-year term.