Aries Capital Secures $46M for 6 Storage Assets

Southern Star Self Storage portfolio. Image courtesy of Aries Capital

Aries Capital has secured $46 million in construction, bridge and permanent debt financing for six self storage assets, totaling more than 414,000 square feet across California, Colorado, Florida and Texas. Directors Brandon Perdeck and Matt Carney, alongside Assistant Vice President Steve Adams, worked on behalf of three separate clients to close the deals.

Diamond Development Partners, a division of Salazar Construction Co. Inc., landed a $17.5 million construction loan for Centre Point Self Storage, a 144,213-square-foot project that is set to comprise 1,361 climate-controlled units in Santa Clarita, Calif., at 21145 Diamond Place.

READ ALSO: Here’s Why Self Storage Will Continue to Prosper in 2022

Aries Capital also secured a $19.9 million interest-only bridge and construction loan for the private owner of Vineburg Wine & Self Storage in Sonoma, Calif. Located at 1010 Napa Road, the recently completed property encompasses 46,397 square feet and 396 climate-controlled units, as well as wine pallet storage spaces and RV and boat parking. The financing will be used for the extension of the asset and the addition of 489 units, totaling 65,000 square feet of storage space.

Vineburg Wine & Self Storage. Image courtesy of Aries Capital

The company also arranged an $8.7 million non-recourse, interest-only, CMBS loan on behalf of Southern Star Self Storage, for the acquisition of Star Self Storage in Addison Airport Self Storage at 4485 Glenn Curtis Drive in Addison, Texas; Southern Star Storage at 3250 NE Candice Ave. in Jensen Beach, Fla.; Montrose Airport Storage at 63224 La Salle Road in Montrose, Colo.; and Southern Star Storage at 3608 US-281 in George West, Texas. According to Yardi Matrix data, Citibank originated the financing through Wilmington Trust. The buyer paid a combined $14.4 million for the four properties that total 152,000 square feet of non-climate and climate-controlled units.

The self storage sector continues to prosper

Most properties in the transactions above are in largely penetrated markets, providing residents between 9.7 and 14.6 net rentable square feet per capita, well above the 7.1 national average. Demand for self storage has remained solid, with overall street rates climbing to $147 in May, a recent Yardi Matrix report shows. The share of existing projects in the planning or under-construction stages was 9.7 percent of existing stock as of June, marking a 20 basis-point month-over-month improvement.

Transaction activity is also on the rise, following the demand for class A properties in certain areas. Just recently, Rialto Capital Management and YourStorageUnits secured $140 million in revolving credit for seven assets across three markets, including Florida. Meanwhile, Trojan Storage landed $130 million in financing for six properties across California, Oregon and Washington, totaling 600,000 square feet.