Arizona-based 1784 Capital Holdings has received a $28.5 million construction loan for a self storage project in Goleta, Calif. White Oak Real Estate Capital provided the senior secured note, marking the firm’s first debt financing since its launch in July this year as an affiliate of White Oak Global Advisors.
Development plans call for a 97,860-rentable-square-foot facility with three above-ground stories and one below-ground level. The project will include 1,023 units, of which more than 900 will be climate-controlled units. The facility is slated for completion within 16 months.
Identifying the potential in Goleta’s university-centered economy and the lack of new supply, 1784 Capital Holdings purchased the 2-acre site at 10 Kellogg Ave. in February 2019. Situated roughly 3 miles from the University of California at Santa Barbara campus, the property will be one of six self storage facilities within a 3-mile radius, Yardi Matrix shows.
Despite its penetration rate of 6.8 square feet per capita—on par with the national average—Goleta lags behind in new development. Upon completion, the project will be the only self storage facility delivered in the market since 2016. According to Yardi Matrix, the bulk of self storage product in Goleta was completed in the early 1990s and early 2000s.
The owner and developer has been active in other markets such as Bethesda, Md., where it is developing a 1,560-unit self storage property. In July, 1784 Capital Holdings received a $45.5 million construction loan for the project, which is set for completion in the second half of 2023.