Arizona-based 1784 Capital Holdings has secured $45.5 million in construction financing for Westbard Storage, an upscale 1,560-unit facility in Bethesda, Md. Talonvest helped structure the three-year loan that includes extension options and prepayment possibilities.
According to the company’s website, the 131,559-net-rentable-square-foot facility will occupy 1.37 acres at 5204 River Road. Westbard Storage will comprise a single five-story building with four levels below ground and will include climate control units.
The project, which is slated for completion in the second half of 2023, is located in Betsheda’s retail center, close to four other self storage facilities and a shopping mall. The property is roughly 7 miles from downtown Washington, D.C.
The Talonvest team that arranged the financing included Jim Davies, Erich Pryor, Mason Brusseau and Tom Sherlock. Earlier this year, members of the same team helped 1784 Capital Holding close on a $22 million bridge financing for a Scottsdale facility.
Strong D.C. market
According to a recent Yardi Matrix report, Washington, D.C.’s momentum in the self storage sector slightly decelerated in June compared to the previous month, when the metro was among the top markets nationwide.
Still, Washington, D.C., continues to outperform national averages. Rent rates in the metro rose 12 percent for 10×10 non-CC units and 17 percent for 10×10 CC units year-over-year.
The number of facilities under construction and planned accounted for 9.8 percent of existing inventory, a 0.5 percent increase in June compared to the previous month, rising 1.5 percent above the U.S. average.
Read the full Yardi Matrix National Self Storage report for the month of July.